Software: QuickBooks accounting software
I want to add an expense account in US dollar (Foreign currency), why can’t I do it?
In QuickBooks, only Bank account, Accounts Receivable account and Accounts Payable account can be set in foreign currency. All other accounts will be in home currency.
If you need to record an expense in foreign currency, first, you need to create the supplier in foreign currency.
Next, use this supplier (foreign currency supplier) in your bill and select the expenses account (home currency account) accordingly. Since supplier is in foreign currency, this bill amount will be in foreign currency. Hence, QuickBooks will base on the exchange rate used in this bill to convert the amount into home currency value and update the respective account accordingly.
The double entry for this transaction will be debit expense and credit accounts payable account. Profit & Loss and Balance Sheet reports will present in home currency value.