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How Bookkeep converts currencies when the source data currency does not match the accounting platform currency
Dealing with multiple currencies can be a very complicated scenario. Each accounting platform is handled differently with multiple currencies, and it is crucial to ensure you are posting in the correct currency to your accounting platform. Below we discuss the various scenarios and how Bookkeep can do the currency conversions for you to ensure postings occur in the correct currency.
QuickBooks Online:
In the case of QuickBooks Online, they have a multicurrency feature that can be enabled. If this is enabled in QuickBooks Online, you will see that indicated from the Connections/Accounting tab:
If this is ON, QuickBooks Online handles the currency conversions. However, if this is not activated within your QuickBooks Online, you may receive an error in Bookkeep indicating "Source currency does not match accounting currency, multicurrency must be enabled". This error occurs to ensure we do not post to accounting in the wrong currency. In this case, Bookkeep can perform the currency conversion for you. If interested in having this enabled for your entity, contact support@bookkeep.com.
Once this is setup within Bookkeep, we will convert the currency if the source data does not match your home currency. Below is an example from QuickBooks Online where Bookkeep completed the currency conversion and posted the details in the description of each line including the original amount and the conversion rate used. In this example, multicurrency was not enabled in QuickBooks Online, and the source data was in CAD and the accounting currency was USD which required the conversion:
Xero:
In the case of Xero, we post manual journal entries for non-deposits and bank transactions for entries involving money transfers e.g. deposits. In the case of manual journals, we compare the source data currency to the base currency of the Xero account connected. In the case of bank transactions, we compare the source data currency to the bank account currency mapped for a particular deposit journal entry. If there is a currency mismatch when doing these comparisons, you may notice your posting fails as we do not want to post the wrong currency to Xero. In this failure case, you will receive an error in Bookkeep indicating "Source currency does not match accounting currency, multicurrency must be enabled". In this case, Bookkeep can perform the currency conversion for you. If interested in having this enabled for your entity, contact support@bookkeep.com.
Once this is setup within Bookkeep, we will convert the currency if the source data does not match your base currency for manual journals or your bank account currency for bank transactions. Below is an example from Xero, where Bookkeep completed the currency conversion and posted the details in the description of each line including the original amount and the conversion rate used. In this example, the base currency (USD) did not match the source currency (GBP), which led to Bookkeep completing the currency conversion to post accurately.
If you would like this currency conversion to be enabled for your entity, please contact support@bookkeep.com.