Chapter 7: Handling Foreign Currencies in QuickBooks Online
If you are working within a business that needs to deal with customers and suppliers located in different countries, there is a high chance those other businesses will operate in a different currency to that of your own.
It could be that although a business has customers based in different countries, the policy of the business is to always raise invoices using the currency of their country only. For example, a UK-based business may charge all customers in GB Pounds Sterling, regardless of where the customer is based.
However, if a business raises invoices using the currency of the customer, the value of an invoice that's sent in a foreign currency can fluctuate by the time it is paid.
Let's say an invoice has been raised for 30,000 USD and that the rate was 0.67. This would give a GBP value of £20,000 against the invoice. If the rate were to change to 0.77 by the time it was paid, the same amount in...
