Katana's multi-currency feature allows businesses to handle transactions in various currencies, facilitating global operations and ensuring accurate financial records. When integrated with QuickBooks Online, this functionality ensures that sales and purchase orders in foreign currencies are accurately reflected in your accounting system.
Prerequisites
Katana plan: Multicurrency support is available on Katana's Standard, Professional, and Professional Plus plans.
QuickBooks Online: Ensure that the Multicurrency feature is enabled in your QBO account.
How it works
1. Currency sync
When you create an invoice or bill in QuickBooks from a sales or purchase order in Katana:
The currency of the original order in Katana is sent to QuickBooks.
The exchange rate used in Katana at the time of creating the invoice or bill is also sent to QuickBooks.
2. Fixed exchange rates
Once an invoice or bill is created in QuickBooks:
If you need to adjust the exchange rate after this point, you must do so directly in QuickBooks. However, changes made in QuickBooks will not sync back to Katana.
Setting up multicurrency integration
Enable multicurrency in QuickBooks Online:
Navigate to Settings > Account and Settings > Advanced.
In the Currency section, click Edit.
Turn on Multi-currency and confirm your selection.
Add currencies in QuickBooks Online:
Go to Settings > Currencies.
Click Add Currency and select the currencies you plan to use.
Assign currencies to customers and vendors:
When creating or editing a customer or vendor in QuickBooks, assign the appropriate currency to their profile.
Additional considerations
Base currency: Once multicurrency is enabled and transactions in foreign currencies are recorded, your base currency in Katana becomes locked and cannot be changed.
Exchange rate updates: Katana updates exchange rates daily using data from Open Exchange Rates. However, once an invoice or bill is created in QuickBooks, the exchange rate is fixed in Katana.
Editing exchange rates: If you need to edit the exchange rate on a sales or purchase order in Katana, you must do so before creating the corresponding invoice or bill in QuickBooks. After creation, exchange rates can only be adjusted directly in QuickBooks, and such changes will not reflect back in Katana.
Consistency across platforms: To maintain accurate financial records, ensure that the currencies and exchange rates used in Katana align with those in QuickBooks.
Your feedback is invaluable. Let us know your thoughts on this article or anything in Katana you'd like to see improved: [email protected]