Multiple Currency Support in QuickBooks
One of the new features of QuickBooks 2009 is Multiple Currency support; Prior to 2009 multi-currency was only available in the Canadian version.
We will take a brief look at it now, if you have questions please let me know and we can dive into it more if needed.
First of all, how do you enable Multiple Currency within QuickBooks?
Multiple Currencies may be enabled in two locations:
- During the Easy Step Interview.
- In Preferences under Multiple Currencies
- Once Multiple Currencies is enable in a company file, it cannot be turned off
- After selecting 'Yes' to enable Multiple Currencies, the user is warned that it cannot be disable and that a backup should be made of the company file.
- If a 'Home Currency' other than US Dollar is selected, the user is informed that Online Banking and Payroll will not function with non-USD home currencies.
New list implemented for Multiple Currencies
- 158 QuickBooks-defined currencies available
May not be edited or deleted
- Four active currencies by default
- New user-defined currencies may be created
- List limit is 500 total currencies
This following list of enabled transactions is quite extensive...QuickBooks did a good job with the multiple currency support.
|
|
|
| Features Which Interact: Time/Costs | Unsupported Features: Foreign Statement Charges |
- Allows user to make adjustments to home currency amounts (revalue the accounts due to the fluctuating exchange rates) to modify exchange gain or loss amounts
Can adjust home currency amounts for bank and credit card accounts.
- Which currency is selected affects the names & accounts displayed
- All amounts except Foreign Balances display in home currency
- Adjusted Balance automatically calculates based on exchange rate entered
Driven by Date
Uses rate for transaction date if availble or most recent prior date.
- New Reports implemented with Multi-Currency
Realized Gain/Loss Report
Shows the gain or loss on a cash basis based on exchange rate
differences between linked transactions
Unrealized Gain/Loss Report
Shows the expected gain or loss on unlinked transactions based
on the exchange rate of the report date vs. transaction exchange rate
- Reports Modified to Support Multi-Currency
Transaction Detail Reports
Displays in home currency by default
Currency, Exchange Rate, Foreign Amount, Foreign Balance,Foreign Open Balance,
Realized Gain/Loss columns can be added
New filters added: Currency & Foreign Amount
Displays in home currency by default
Can be modified to display in the currency of the transactions
New filters added: Currency & Foreign Amount
List Reports
Displays in foreign currency by default (where applicable)
As a quick note, I'd like to add that I am set up on twitter. If you're not using it yet, you should look at it. If you are on it or end up using it, I invite you to follow me my user name on twitter is qb_baron - just click on this link, it'll take you directly to my twitter homepage.
As always, if you have a question, feel free to send it to me or make a comment right here in this column.
