Multi currency customer and bank accounts in QuickBooks Online


Hi! Kerry here from MyQuickBookKeeping. Today, I’m going to show you how to assign
a different currency to your customers and bank accounts on QuickBooks Online. Be sure
to watch to the end of the video and I’ll show you how the transactions appear on your
balance sheet, and you’ll be able to see where any variations due to currency adjustments
appear. In a previous video, I’ve walked through
the steps to turn on multicurrency. If you’ve not yet turned it on, you can access that
video and come back when you’re ready. A very common concern users of QuickBooks have
about multicurrency is how to set up the accounts receivable and accounts payable in different
currencies. QuickBooks actually does this for you like magic. I’ll walk through an
example so you can see the result. Click the Sales tab, select Customers. In
the right hand corner, we can set up a new customer. Let’s name our company Australian
Dollar Customers, not very imaginative but it will do for illustration. Under the Payment
and Billing section of this page, you can scroll down and select the currency. This
customer pays me with, let’s drop down and choose, Australian dollars, then save. Now let’s create an invoice for this new
customer. Notice that the exchange rate is displayed automatically. Let’s sell them
an Employee Celebration. The rates displayed in the invoice in Australian dollars, and
we can see below the equivalent amount in Canadian dollars. We’re somehow providing
this service in Australia so the tax is exempt. Let’s save and close the invoice. Let’s have a look at our balance sheet.
It’s a little confusing here because everything is shown in Canadian dollars, however you
can see that an account has been set up here, for accounts receivable, Australian dollars,
separate to our normal accounts receivable account. And it shows up in the Canadian equivalent
that we saw in the prior invoice. Everything has flowed through and works. If
you have customers or suppliers who offer you two currencies for whatever reason, you
need to set them up separately. For example, Customer A: CAD, Customer A: USD. That way,
you can process transactions in specific currencies as each customer can have only one currency
assigned to it. Let’s open an Australian dollar bank account
to go with our new customer. On the left tab select Accounting. A Chart of Accounts will
appear. In the top right hand corner, we select New. So this will be a bank account. Let’s
make it savings, and we’ll call it Australian dollar savings. And then here in the currency, we can select
once again, Australian dollars. So we save it, and here it is, appearing in our account
list. So to complete the circle, let’s have our customer pay us, and then we can see how
that shows up on our balance sheet also. Using the x at the top right, under Customers,
choose Receive Payments. We will choose our Australian dollar customer and have them pay
only $20, which we will deposit to the Australian dollar account that we set up. So let’s
save that and have a look at our balance sheet. Now remember, all of these numbers are displayed
in the home currency. In this case, Canadian dollars. The $20 we collected and deposited
is showing here as $19.58 CAD. And the balance in the accounts receivable is now showing
up as $480.42 in CAD. Now, if we check the outstanding amounts by
customer, here we go, showing up is $490.68 in Australian. Everything’s tied together
and it all flows through perfectly. Let me know if you have any questions, and
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