How do I record FOREX transactions in Quickbooks desktop?

We get paid by our customers mostly in USD. We sell those funds (in USD) and buy CAD using Foreign Exchange Market (FOREX) to obtain our operating funds as invoices we pay are mostly in Canadian dollars. (Except certain invoices such as invoices for freight cost, which is billed in USD normally in this industry.)

My question is how do I record those FOREX transactions in Quickbooks?

It is NOT like we are paid by customers in a different currency which we specified in our invoice. (i.e. We billed in CAD and customer paid in USD.)

Answer

Thanks for posting your concern, owner.

I'd be glad to help you record your FOREX transactions in QuickBooks Desktop.

We have the Multi-currency feature in QuickBooks that can track transactions in foreign currency. This feature allows you to assign a specific currency type to Customer and Vendor profiles, and some accounts.

Let's get this started by turning on Multi-currency in the Preferences.

Here's how:

  1. Go to the Edit menu.
  2. Select Preferences.
  3. On the left pane, select Multiple Currencies.
  4. Click the Company Preferences tab, then select Yes, I use more than one currency.
  5. From the drop-down, select your home currency.
  6. Click OK.

Please note that once the feature is enabled, you can no longer turn it off. Make sure that you backed up your QuickBooks company file before proceeding.

After which, you can set up Multi-currency to create transactions with foreign currencies.

Here's how:

  • Add foreign-currency customers and vendors.
  • Add foreign-currency accounts.
  • Update your exchange rates.
  • Create foreign-currency transactions.

You can click on the link for the process: https://community.intuit.com/articles/1501407.

That information should help you record your FOREX transactions. Let me know if you need anything else about your concern. I'm always here for you.


Was this answer helpful? Yes No
Original
IntuitMariaAlma , Community Support Specialist
Employee SuperUser

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.