Can I change the default A/R or A/P account in QuickBooks Online

Can I change the default A/R or A/P account in QuickBooks Online
QuickBooks Help
QuickBooks Online (QBO) is not designed to work with multiple Accounts Receivable (AR) and Accounts Payable (AP) accounts. The initial AR and AP accounts, or those selected during conversion, will be the default accounts. We encourage our customers to merge their accounts payable and receivable accounts. For more information on merging accounts, please see Merging accounts, vendors, or customers. If division of open payables and receivables are needed use one of the following options…

 

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QuickBooks Multicurrency in QuickBooks Online US

With QuickBooks Online (QBO) multi-currency, you can track transactions in more than one currency. Multicurrency affects many accounts and balances in company file and the preference can’t be turned off once it’s been turned on.

Important: Since you cannot really back up company file (with all the features and the settings) in QBO at this time, make sure this is what you want before turning on this multi-currency feature.

The multi-currency menu items are in the Company Settings menu under Currency in the QuickBooks Online.

From the home page screen > company gear (upper right corner) > settings > company settings > currency > ON > Save

Click on the screenshots below to enlarge them
1enable currency feature

Multicurrency once enabled from the QuickBooks Online, one cannot UNDO it. See screenshot below, there is no edit pencil icon for currency, once the currency feature is ON.
2currency feature enabled

Once the multi-currency is enabled, it will do two visible things:

  • It will create “Currencies” under lists.
  • It will create “Exchange Gain or Loss” account under “Other Expense” type.

lists currencies

exchange gain or loss account

Currency exchange rate

Once set, the company’s home currency cannot be changed:
For US QuickBooks Online editions, the home currency is set to USD, by default.
Exchange rates are always recorded as the number of home currency units it takes, to equal one foreign currency unit.

To add new currency > from the home page screen > company gear (upper right corner) > lists > currencies > add new

home currency table

How to start using the multi-currency feature?

  • After you turn on the feature, you will be able to assign a currency to customers, vendors, and other accounts.
  • You can assign one currency for each customer or vendor so you will create new customers or vendors to use in your foreign transactions.
  • You can assign one currency for each account so you will create new accounts to use for your foreign transactions.
  • If you prefer to use your own exchange rates, you can manually enter those as well.

The following image shows how these currencies attributes in an Invoice transaction relate to the representation of the invoice.
invoice in gbp

Customer Center > from the home page screen > left navigation bar > customers

customer center

Customer Page > from the home page screen > left navigation bar > customers > customer

customer page

It also automatically creates separate Accounts Receivable accounts (not sub-accounts) by currencies in addition to main home currency A/R.
ar accounts by currencies

A/R Aging Summary Report in home currency
ar aging in home currency

Balance Sheet Report
Since A/R (and A/P) not sub-items type, it cannot be collapsed even if wanted.
balance sheet

(All Vendor side transactions and reports also work the same way as Customer transactions).

Mult-currency features not available

Weekly TimeSheet and Single Time Activity entered (either by employee or vendor contractor) do not work with multi-currency at this time. You will get the following error message:

“The following errors have occurred: You must choose a customer that uses local currency when time is billable.”

multicurrency single time not working

multicurrency timesheet not working

 

Weekly Price Check US CA UK AU (Plus Plan)

USACanadaUKAustralia
us120x90ca120x90uk120x90au120x90
USD 23.97 per monthCAD 14.50 per monthGBP 15.00 per monthAUD 21.00 per month
USD 23.97 per monthUSD 12.01 per month
(Conversion)
USD 23.30 per month
(Conversion)
USD 16.60 per month
(Conversion)
LOWEST PRICE!

RELATED ARICLES:

Where does QBO get its currency exchange rates from

Which versions of QBO support the multi-currency feature

How do you mark a bill as paid if paid by your parent company (not by your bank account or credit card)

First, you need to get some guidance from the parent company if they go through inter-company elimination process to prepare consolidated balance sheet report.

In QBO create Intercompany Accounts Payable Account (not main Accounts Payable A/P) >

you can select “Credit Card” Type > it will show as Credit Card group on the Balance Sheet. When you Pay Bills (or enter expenses), you can select this account instead of bank account > easy one step process only > however, if parent company has a problem using Credit Card type account then, you may need to set it up as “Other Current Liabilities” type account.

In that case, it becomes two step process > pay bills (or enter expenses) using Credit Card type as I/C clearing account > transfer the balance from Intercompany Accounts Payable (other current liabilities type) to Intercompany Clearing account (credit card type > new name). To transfer in QBO, you can use Transfer (create + sign > other > transfer) or write a Journal Entry (and make it reversible JE if needed).

Again, it’s a good idea to consult with your parent company who handles Intercompany accounts. And, always reconcile accounts on a regular basis.

Click on the screenshots below to enlarge them
ic payable

ic paybills

ic payable2

transfer

transfer_je

balsheet2
NOTE:
On the parent company’s books, they should record this as an intercompany accounts receivable.
In QBO for Intercompany Accounts Receivable > select “Other Current Assets” Type (not main Accounts Receivable A/R type. In QBO, you can have just one A/R).

QuickBooks Online – How to enter various expenses in QBO?

The tutorial video below explains how different expense transactions are entered in QuickBooks Online. It is a step-by-step process of learning how to enter expenses in QBO. This is probably the best in-depth video that covers vendor expenses in QuickBooks Online. I highly recommend you to watch it.

 

Let me summarize the content of this video:

  • It explains how to enter expenses like debit card, credit card, ATM, cash withdrawal, bank fee, wire transfer, write check, enter Vendor Bill to pay later as A/P, Pay Bill by the Check and create Purchase Order and more.
  • It explains how to set up and enter billable charges to customers.
  • It explains how to set up and enter expenses by class tracking and location tracking.
  • Lastly, it explains how these entered expenses will show up on various financial reports.

Click on the screenshot below to enlarge it
vendors

 

#QuickBooks Online

 

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