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Multicurrency: The B/S shows a balance in a Credit Card account but the CC account is zero

In QuickBooks Desktop, when a foreign bank account uses Write Checks to pay a foreign credit card bill with a different exchange rate, the credit card liability will not have a comparable balance in the foreign credit card account.  
 
Normally a QuickBooks Desktop company file using multicurrency would simply take the difference of the two USD amounts (the one for the bill and the one for the payment - [they are different because they have two different exchange rates]) and enter a debit or credit into the Exchange Gain or Loss Account (Other Expense) to balance the transaction.
 
In this instance QuickBooks does not use the Exchange Gain or Loss Account in the transaction. The entire USD amount of the bill payment will be entered in the foreign currency Accounts Payable account.   Because of the exchange rate the USD for the bill was different from the USD for the payment. Paying the foreign credit card with a foreign check will decrease the foreign credit card bill to zero, but the USD side will remain.   
How to fix it
  1. First make sure you foreign credit card balance is zero. (Or calculate the difference of he USD amount and the foreign currency amount).
  2. From Company  menu, select Make General Journal Entries...
  3. Choose the US Dollar currency from the Currency drop down menu.
  4. Choose the correct date for the entry.
  5. Place a check in the Home Currency Adjustment check box.
    • You may get a message "The Home Currency Adjustment checkbox should only be used to adjust the home currency equivalent of foreign currency accounts. See help for more information.
  6. Click OK to this message if you get it.
  7. Notice that the Exchange rate 1 USD 1 and is grayed out.
    • This indicates that you will only be adjusting the USD rate and not the foreign currency.
  8. On the first line of the Journal Entry enter the credit card liability account and the amount (the USD amount) from the Balance Sheet (or the amount you calculated in Step 1) .
    • Enter a Debit if the if the amount is positive or a Credit if the amount is negative.
  9. On the Second line of the Journal Entry enter the Exchange Gain or Loss account and the opposite debit or credit to balance the transaction.
  10. Click Save & Close.
Your Balance Sheet should now be correct.
KB ID# SLN43295
12/8/2016 8:04:49 AM
PPRDQSSWS407 9138 Pro 2017 a26242