Qvinci Multi-Currency Conversions

Overview

Qvinci offers currency conversions for both QuickBooks Desktop and Online versions, along with other select accounting software, via XE.com for currency conversions. Conversion rates are applied to each transaction based on its transaction date in QuickBooks. The user cannot set a desired conversion rate, as this is derived directly from XE. 

Qvinci utilizes XE for currency conversions. 

Conversions take place for P&L and Balance Sheet reports, as well as the Ranking and Ratio reports that are generated from the P&L and Balance Sheet.

A/R Aging Summary, A/P Aging Summary, Sales by Customer, and Expense by Vendor reports may all be run on entities with the same home currency. Comingling of entities for these reports is not available since currency conversions do not take place. 

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

Conversion Rates Used

Because Profit & Loss reports are activity-based and Balance Sheet reports are run as of a point in time, different conversion methods are used. Also, the conversion methods for Profit & Loss data vary slightly between the QuickBooks Desktop and Online versions.

Profit & Loss - QuickBooks Desktop Only: The P&L data undergo a currency conversion based on the average daily rate from XE. The XE rate for each day is then applied to all transactions in the QuickBooks Desktop file for that specific day. Each day's transactions may likely have a different conversion rate.

Profit & Loss - QuickBooks Online Only: Instead of looking at the rate for just the day of an individual transaction, QuickBooks Online uses the average rate for the month in which the transaction occurred. Each transaction will utilize the same rate as other transactions that occurred within the same month.

Balance Sheet Data - Same for QuickBooks Online and Desktop: The Balance Sheet data undergo conversion using the average daily rate based on the last day of the reporting period that the report is run for. Therefore, if you run a report on 1/5/2019 for the date range of "Last Calendar Year," the conversion rate used would be the average rate found in XE on 12/31/2018 (the last date in the reporting period).

Currency Conversions for Other Accounting Systems

Qvinci does not offer currency conversions for other accounting systems.

Xero: No currency conversion will take place for Xero files. It is required that Xero files only sync to a Qvinci client/company with the same home currency. 

AccountRight/MYOB: No currency conversion will take place for AccountRight/MYOB files. It is suggested that all AccountRight files sync to a Qvinci client/company with the same home currency. AccountRight will still sync and report in a consolidated manner with other currency files. However, AccountRight data will undergo no currency conversion when commingling with other currency files in Qvinci. 

Excel: No currency conversion will take place for Excel syncing locations. Financial data will be displayed in Qvinci as it comes from the Excel file. Excel locations need not be segregated to their own Qvinci company so long as the financial data share the same home currency as the other accounting files that exist in the Qvinci company.

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

Qvinci allows the Qvinci administrator to select a reporting currency in the dashboard for each Qvinci client/company. Therefore, if a QuickBooks Desktop file is using a different home currency than what the Qvinci company is enabled for, then that file's data will undergo currency conversion in the Qvinci dashboard. The currency conversion takes place during the sync process. The result is that all Qvinci locations are reporting in the same currency in Qvinci. However, no changes are made to the QuickBooks files themselves. 

What Conversion Rate Is Used for Each Report and Source?

• All conversion rate values are calculated for the date of the synced report
  • P&L Monthly and P&L Weekly
    • Desktop - For each transaction, we grab the conversion rate for that day
    • QBO - We average all the currency conversion rates for the given month 
  • BS
    • Desktop & QBO - Conversion rate on the last day of the month

P&L Monthly and P&L Weekly

• Reporting: activity based
  • We sum each individual month of a P&L to get ACTIVITY for a date range (e.g., last 3 months).
• Syncing: Each month has a conversion rate which is calculated differently per file type (see above).  

This means if we have an income account called "Engine Sales," then each individual month will get converted correctly, and if you ask for the last 3 months, Qvinci will sum the converted values.

Here is an example of how Qvinci calculates QuickBooks Desktop currency conversion using daily rates for the three transactions that happened during the month of April.

Balance Sheet

• Reporting: point in time
  • Qvinci takes the ending value for a given date range because the value is being summed up to that point in time in the report.
• Syncing: Each month is multiplied by the currency conversion rate on the last day of the month, or "Today" if a YTD report. 

Qvinci Reports Affected by Currency Conversion Matrix

* This includes all reports/packages. 

File Types Affected by Currency Conversion Matrix

Real-World Example With Net Income for QBO

Conversion Rates

Actual Net Income (Non-Converted)

Currency Converted Net Income