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M
Marion22
November 21, 2023
Question

Change to MULTICURRENCY

  • November 21, 2023
  • 1 reply
  • 0 views

hello,

 

We have our accounts in euros, without the multicurrency option activated. We want to activate it in January after the end of the financial year. We used to convert manually to record movements in other currencies.

I have a few questions before activating multicurrency because I can't find some of the answers:

 

1/ I have 3 bank accounts that were in Euro and 2 are going to be in GBP. I've understood that I need to recreate another account and make the 1st one inactive.

But how do I transfer the converted balance?

How can I avoid ending up with twice the balance in the accounts?

 

2/ I have the same problem with all my third-party accounts that are in euros and are going to become third-party accounts in pounds. How do I transfer the Euro balance, converted to GBP, to the new third-party account?

 

Maybe I'm going in the wrong direction, but basically on 1 January my accounts will remain in euros but some supplier, bank and customer accounts will be in euros. I'm trying to find out how to transfer or recreate them but with the right balance allocated.

 

Thank you for your help.

1 reply

A
Ashleigh1
November 21, 2023

 Hello Marion22, thanks for posting on the Community page, Why is your account without multi-currency turned on for your euro accounts as QBO UK accounts without multi-currency on, the default currency is in GBP so you would need to have multi-currency turned on for any euro accounts.

So for your first question, the answer is you don't need to re-create the euro bank account if ever you turn on multi-currency.

for your second question, the answer is you can record the amounts via a journal, if you are not sure how to enter this in a journal we advise you to reach out and speak to a trained and qualified accountant. 
 

M
Marion22Author
November 21, 2023

Thanks Ashleigh1. I'll try to give you more details.

 

The administration let us be in home currency in Euro for now since we're part of a Italian company.

Anyway, so quickbook online is set with Euro as the home currency and the GBP as a foreign one. That's doesn't change my question since I would have the same porblem, just the opposite way.

 

Until now we were doing the convertion from GBP to Euro manually before registering bill/invoices/entries in Euro.

Now, we want to put on the multi currency. Our accounting will still be in Euro, but some client, supplier, and bank account will be set in GBP.

So I understood that I cannot change the currency of an existing client. From what I understood I needed to create a new one in GBP and make inactive the one I won't use anymore in Euro. Until here I'm ok.

But how will I transfer the balance of the "Customer A" in Euro, into his new account in GBP.

I have a TEST environnement where I've turnered on the multicurrency and when I'm trying to create an entry to transfer it, the system doen't let me because it's saying we cannot transfer into different currency.

 

My accoutant told me to contact you because that's more a question of how quickbook is working that an accountacy matter.

 

I hope it's clearer

S
SirielJeaB
November 21, 2023

Let me provide further details about multicurrency in QuickBooks Online (QBO), Marion22.

 

When multicurrency is enabled in QuickBooks Online, you can't directly transfer the balance of Customer A in Euro to their new account in GBP. Instead, you'll need to manually convert the customer's Euro balance to zero out the account. Then, use the new GBP account moving forward. This process is necessary due to the system's restriction on transferring balances between different currencies.

 

To learn how multicurrency works in QBO, read this article: Set up and use Multicurrency in QuickBooks Online.

 

You can also adjust your home currency on a regular basis to stay current with the recent foreign exchange rates.

 

Return to us if you need more help with managing multicurrency. The Community is here around the clock, and I eagerly await your response. Take care.

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