About multi-currency transactions
Setting up your PayPal account to handle multiple transactions and convert them into your primary currency is easy.
Every time a sale is made, the foreign currencies are converted at the latest conversion rates and credited to your PayPal Business account in your Primary (Home) currency. Or, you can choose to convert them manually yourself for every transaction.
However, to record this conversion into QuickBooks Online properly can be a pain.
There are extra transactions created to buy and sell currency in PayPal. They are reported together with sale or payment transaction and it requires some effort to segregate them and record each accurately.
Your Sync to Accounting app has a built-in automated process of currency conversion which is a great time-saver and eliminates the possibility of errors in making conversion calculations.
There only two simple requirements to meet for your Sync to Accounting currency conversion capability to work.
Main requirement: The Home currency in your QuickBooks Online account and the Primary currency of your PayPal account must match.
The second requirement is that you connect to your QuickBooks Online account before you connect to your PayPal account. We tell you why at the end of this tutorial.
In other words, if your QuickBooks Online settings have USD set as the Home currency while the Primary currency of your PayPal account is set to EUR, the conversion process will NOT work.
Here how you can review and set Primary currency in PayPal:
- Log in to your PayPal account.
- Click Money at the top of the page.
- Click Manage Currency.
- Choose the currency to make Primary
- Click Make Primary.
Check your QuickBooks Online home currency.
You will need to go to Settings >> Advanced and find Currency section.
Once both (QuickBooks Online and PayPal) currencies match you can use the Sync to Accounting app for any multi-currency transactions and be confident that they will automatically be converted into the Home currency of your QuickBooks Online accounting system.
Important Note about the Second Requirement: In your Sync to Accounting app we make it simple to enable the currency conversion capability. There is a specific sequence of connecting QuickBooks Online and PayPal that allows us to process multi-currency transactions properly. First, our system reads your accounting Home currency. And then when you connect PayPal, it automatically processes all your multi-currency transactions during the sync (import).