QuickBooks foreign currency transaction

Software: Intuit Quickbooks Desktop accounting system

In QuickBooks, only bank, accounts receivable, accounts payable, and the credit card accounts have the multiple currencies option.

After turning on the multiple currencies feature in QuickBooks, you have to set the trading currency in each debtor or creditor profile. So, the related transaction will record in foreign currency.

QuickBooks multiple currency

By default, the foreign currency transaction will pick up the exchange rate from the currency table; however, you can change the exchange rate to match the GST in Singapore dollar which shows on the foreign currency bill.

Local Supplier who billed you in foreign currency has to show the amount before GST, GST, and the amount inclusive of GST in Singapore dollar equivalent. You have to follow the exchange rate shown on the bill instead of the system exchange rate, so to claim the input tax correctly.

For example, your system exchange rate is 1USD:1.3500SGD. You received a US dollar bill from a local supplier shows a GST of US$700 (S$947.10 Singapore dollar equivalent). Then, you record the bill at 1USD:1.3530SGD instead of the system exchange rate. It affects the GST amount in Singapore dollar if using the system exchange rate instead.

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