| Title |
Using exact foreign currency exchange rate versus the same average exchange rate |
| KB ID#: |
1815 |
| Categories: |
General Issues |
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| Answer: |
The multicurrency feature first appeared in Quicken 99. It enables automatic conversion of foreign currency transactions into whatever currency has been specified as the "home" currency in the Quicken data file.
The currency exchange rates can be edited so that a transaction on a given day exactly matches the exchange rate for that currency for that day. This will provide the most accurate current account balances for that day. This may not be feasible for users with numerous transactions or many different foreign currencies since the Quicken Currency List has to be edited each time the rate changes. For these users, it may be best to initially edit each foreign currency for a best overall average, then use that rate for every transaction. While this may be somewhat less accurate on a daily basis, reports such as Net Worth, Investment Performance and P & L will be more accurate when a good average over time is used.
Note: When a report is created, Quicken uses whatever foreign currency exchange rate is currently listed in the Currency List. If the current rate is substantially different than most of the transactions over the report period, the report results will be inaccurate.
The ideal for both current balance information and report accuracy is to do the following:
- Use the most current exchange rate when entering a foreign currency transaction in Quicken.
- When creating a report, edit the Currency List so the rate is an average over the report period. To get an historical average, use the OANDA, Inc. Website. This site will provide an average exchange rate over any period of time (after 1990) for any foreign currency.
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