How to Use Multiple Currencies in QuickBooks

A client may inquire about the use of multiple currencies. There are a few things they should know prior to enabling the QuickBooks® Multi Currency Functionality. First, the option to turn on multiple currencies is not reversible. A client should make a backup copy of the file prior to turning on the multi currency indicators in case they desire to revert back to a single currency.

Second, once the multiple currency preference is turned on, then other currencies to track must be selected. Use the Lists, Currency List to select the other currencies you wish to track.

As transactions are added that occurred in other currencies, the accounts and vendors are linked to their different currencies and the transactions are entered in the other currency. An exchange rate must be used for transactions. The amount shown on this transaction will be reported in the financial statements in US dollars at the amount indicated, via the amount of foreign currency entered and the exchange rate used. In the example below, the transaction is entered at 185 Euros, via the exchange rate, the transaction will be reported in the financial statements at $137.83 (US Dollars).