Hi! Kerry here from MyQuickBookKeeping. Today, I’m going to show you how you can
assign a different currency to your suppliers or vendors, and then, to a credit card. Then
you can pay those suppliers using that credit card. Be sure to watch right to the end, because
then we’ll run the profit and loss or income statement. We’ll see how those transactions
appear and how currency fluctuations are reflected in your results. 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 really 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. Go to the Expenses tab and select Suppliers.
In the right hand corner, you can set up a new supplier. So let’s name our company
USD Supplier. It’s important now that you select the currency for this supplier. After
you’ve saved it, it will be too late. So we go here now and choose USD. Save. Now, we’re going to purchase something from
our new supplier. Let’s go here and enter a bill. We’ll choose our USD supplier right
here. And the exchange rate to Canadian dollars is displayed. All of the fields below are
now in US dollars. Note that the exchange rate is displayed automatically. We’re going
to put the date for our bill as November 30th. And when we change the rate, the exchange
rate is updated also. We’re going to purchase some supplies. Let’s
set supplies for $10,000. We will ignore sales tax for the purpose of this example. And this
should enable us to track the exchange rate variants. The cost down here is displayed
in both US and Canadian dollars and that’s calculated using this rate up here. Save this. Now, I like to have a credit card or bank
account in any currency I use often. So let’s use a US dollar credit card, and if nothing
else, it will come in handy for our cross-border shopping. Choose Accounting on the left hand
margin and then we select New on the top right corner. The Category Type and Detail Type
will both be credit card. Let’s name it US dollar credit card. Now, be sure to select
the currency before you save. Okay? Now we have a new account set up. Now, let’s go up and pay our bill using
that credit card. Under paid bills, I don’t save it. So let’s change the currency to
US dollars. There we go, our bill appears. I’m going to pay it with the US dollar credit
card today. Here it is. The exchange rate is displayed and the amount of the payment
is shown in both Canadian. Oh I haven’t selected the bill. Now the amount of the payment
is displayed in both US and Canadian. You can make a payment from a Canadian account
if your bank allows it. Once we’ve done this, we save. Now I’d like to show you the income statement
so you can see the impact that currency movement has had on our transactions. Have a look down
here. We have an amount in supplies in Canadian dollars. Now this is using the rate in effect
when we purchased the goods on November 30th. And further down here, we have an exchange
difference. It’s being calculated as the difference between the rate on the date we
purchased the goods and the date we paid for them. So if we click through to this account,
we can see that it was credited 346.25 when we paid our US supplier. Everything is being
calculated for you. You don’t need to do anything other than enter the transactions
as they occur. Let me know if you have any questions. If
this video was helpful, click like below. Subscribe to my channel. I’ve created a
small business month-end checklist. You can download a free copy below and it will help
you to get your results in order every month and you can properly monitor how your business
is going. If there’s another topic that you’d like help with, make a comment below,
and my next video could be for you. Cheers!