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Are There Restrictions On Making General Journal Entries In a Multicurrency Environment?

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Yes, there are a few restrictions on making General Journal entries in a multicurrency environment.

  1. Only 1 foreign currency is allowed per General Journal entry
  2. The currency of the General Journal entry must match the currency of the accounts selected or be your home currency
  3. If you enter data in the Name field, it must match the currency of the Account field

The Currency selected in a General Journal entry represents the currency units used in the entry.  A General Journal entry to an account transacting in EUR with the Currency set to USD (where USD is the home currency) is permitted – the entry will simply be converted at the Exchange Rate recorded with the General Journal entry.  However, a General Journal entry between 2 accounts, 1 transacting in EUR and the other transacting in GBP (where the home currency is USD) is not permitted.  Further, if the Currency for the entry is set to something other than the home currency (such as EUR if your home currency is USD), you can’t enter a General Journal entry to an account transacting in GBP even though there is just 1 foreign currency on the entry.

Here’s an example of a General Journal entry in Euros (EUR) that meets these restrictions:

QuickBooks Premier 2009 Multicurrency Make General Journal Entry

Here are some of the warning screens you’ll see if you attempt to violate these restrictions:

QuickBooks Premier 2009 General Ledger Warning 4

QuickBooks Premier 2009 General Ledger Warning 6

QuickBooks Premier 2009 General Ledger Warning 5

The restrictions on General Journal entries in a multicurrency environment are in addition to the restrictions that apply when only 1 currency is used.

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Comments

  1. I am surprised. This is not good I need 3 currencies to be shown on each journal entry but as you mentioned only one currency can be shown. Please tell me what to do!

    • The simple answer is to record 3 general journal entries. The problem is that each general journal entry only accepts a single exchange rate, so it’s not possible to record more than 1 currency in a transaction.

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