Qvinci Multi-Currency Conversions

Introduction

In today’s global economy, businesses often deal with multiple currencies, which can complicate financial reporting. Qvinci simplifies this by offering automatic, real-time currency conversions powered by Xe.com, ensuring your reports reflect accurate, up-to-date exchange rates. This article explains how Qvinci handles currency conversions across different reports and accounting systems.

Overview

Qvinci provides automatic currency conversion for both QuickBooks Desktop and QuickBooks Online. Conversion rates are sourced directly from Xe.com and are applied based on each transactions' date in QuickBooks. This ensures accurate financial reporting across multiple currencies. Users cannot manually set conversion rates, ensuring consistency and transparency in reporting.

Note:

Qvinci uses exchange rate data from Xe.com to perform currency conversions, but we do not share or display raw Xe.com data within the platform. The conversion rates are applied automatically during the sync process, ensuring that your reports reflect the most accurate rates without needing to access the underlying Xe.com data.

Supported Reports

Qvinci applies currency conversions to the following financial reports for QuickBooks Desktop, QuickBooks Online, and any Quickbooks Desktop By Class or Quickbooks Online By Class, unless otherwise noted:

• General Ledger
• Profit & Loss (P&L)
• Balance Sheet
• Ranking and Ratio Reports (derived from P&L and Balance Sheet)
• Trial Balance
• Cash Flow
• Accounts Receivable (A/R) Aging Summary
• Accounts Payable (A/P) Aging Summary
• Sales By Customer
• Expense By Vendor

Note: Qvinci does not support non-USD currency to non-USD currency conversion. One side of the currency conversion must be in US dollars.

Note: Each report must be run on entities using the same home currency. Consolidating entities with different home currencies is not supported.

Currency Conversion Chart

Conversion Rates and Methods

Here’s how Qvinci applies conversion rates across different report types:

1. General Ledger (GL) Reports

• QuickBooks Desktop & Quickbooks Online:

Conversion uses the daily average rate for each transaction date, ensuring accurate tracking of historical transaction values.

2. Profit & Loss Reports

• QuickBooks Desktop:

Conversion uses the daily average rate from XE. Transactions are converted using the rate on the day they occurred, which can result in varying rates within the same report.

• QuickBooks Online:

Conversion uses the average monthly rate for transactions that occurred within the same month, ensuring consistency across all transactions in that period.

3. Balance Sheet Reports

• QuickBooks Desktop & Quickbooks Online:

The point-in-time conversion rate from XE is used, applying the rate on the last day of the reporting period.

4. Trial Balance Reports

• Currency conversion for Trial Balance reports is now supported for QuickBooks Desktop and QuickBooks Online. For these reports, Qvinci applies a point-in-time conversion rate, which is based on the rate at the end of the reporting period, similar to Balance Sheet conversions. Currently, Trial Balance By Class is not supported.

5. Cash Flow Reports

• The Cash Flow report utilizes data from both Profit & Loss and Balance Sheet reporting. Net Income is calculated from P&L Monthly, while other cash-related data comes from the Balance Sheet. Cash Flow typically covers a single period, but Qvinci offers the option to run reports for multiple periods. When multiple periods are run, each period will have a different conversion rate. As a result, Cash at the End of each period and Cash at the Beginning of the next period may not align due to rate variations between periods.

6. Accounts Receivable (A/R) and Accounts Payable (A/P) Aging Reports

• Currency conversions for Accounts Receivable and Accounts Payable reports use the daily average rate from XE. Each transaction is converted based on the rate for the specific day it occurred.

7. Sales By Customer and Expense By Vendor Reports

• Currency conversions for Sales By Customer and Expense By Vendor reports in both QuickBooks Desktop and QuickBooks Online (including their By Class variants) are based on the monthly average conversion rate. This method ensures that all transactions within the same month are converted consistently, making it easier to compare results.

Handling Non-USD Currency

Currently, Qvinci only supports conversions where one side of the currency is in USD. This means that reports involving non-USD currencies (such as EUR to GBP) will not be converted. One side of the transaction must always involve USD for conversions to occur.

Currency Conversion for Other Accounting Systems

Qvinci does not offer currency conversions for other accounting systems like Xero, AccountRight/MYOB, Excel, and Manual Entry. Below are the details:

• Xero: No currency conversion is applied. Xero files must sync with a Qvinci company using the same home currency.
• AccountRight/MYOB: Currency conversion is not applied. These files sync without conversion, and it is recommended that they sync with Qvinci companies using the same home currency.
• Excel: No currency conversion takes place. Data is displayed as it appears in Excel and can be consolidated with other files only if they share the same home currency.
• Manual Entry: No currency conversion will take place. Financial data will be displayed in Qvinci as it is input by the user.

Currency Settings in Qvinci

In Qvinci, administrators can select a reporting currency for each client or company. If the home currency of a QuickBooks file differs from the company’s reporting currency, the data will be automatically converted during the sync process. This ensures uniformity in reports, without altering the original QuickBooks data.

Conversion Rate Overview for Reports