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Foreign bank account balance on balance sheet does not reflect current exchange rate value

When using the multicurrency feature in QuickBooks Desktop you may run a Balance Sheet and see account balances in your foreign bank accounts which do not reflect the home currency value based on the current exchange rate.

How to fix it

Until the home currency value of your foreign balances is recalculated using current exchange rates, your reports reflect the home currency value based on the exchange rates used at the time of each transaction. At the end of a reporting period, when you need your financial reports to reflect a current home currency value of your foreign balances, enter a home currency adjustment.  
Important:
Home currency adjustments change the home currency value of your foreign balances. These adjustments affect your balance sheet accounts and we recommend that you work with an accounting professional before entering these adjustments.   Note: Home currency adjustments do not affect foreign balance amounts.  

You can review the adjustment numbers without making an adjustment by creating an Unrealized Gains & Losses report.

  To create an Unrealized Gains & Losses report:

  1. Click the Reports drop-down menu, select Company & Financial, and then select Unrealized Gains & Losses.
  2. Enter a report date to show open balances as of the date you enter.

  3. Click each currency you want to update and enter the current exchange rate you want QuickBooks to use for your open transactions. By default, QuickBooks uses the latest exchange rates available in the currency list.

  4. When all exchange rates have been updated, click Continue to create the Unrealized Gains & Losses report.

 

When necessary, you can enter a home currency adjustment.

Home currency adjustments are recorded as general journal entries and can be edited and deleted as needed.
The Home Currency Adjustment form doesn't use previous and next buttons so you need to use the journal entry QuickBooks created to make changes to a saved home currency adjustment.

Run a quick report on the Exchange Gain or Loss account to find existing home currency adjustments:

  1. Go to the Lists menu and click Chart of Accounts.

  2. Double-click the Exchange Gain or Loss account (account type is other expense) to open the Account QuickReport.

  3. In the Account QuickReport, home currency adjustments are listed as type General Journal.

  4. Double-click the adjustment you want to edit. QuickBooks Desktop opens the original journal entry and you can make and save changes as needed.

Home currency adjustments are recorded as general journal entries and can be edited and deleted as needed.
The Home Currency Adjustment form doesn't use previous and next buttons so you need to use the journal entry QuickBooks Desktop created to make changes to a saved home currency adjustment.   To edit previously entered home currency adjustments:  

  1. Go to the Lists menu and click Chart of Accounts.
  2. Double-click the Exchange Gain or Loss account (account type is other expense) to open the Account QuickReport.
  3. In the Account QuickReport, home currency adjustments are listed as type General Journal.
  4. Double-click the adjustment you want to edit. QuickBooks opens the original journal entry and you can make and save changes as needed.
KB ID# SLN44124
12/8/2016 5:53:07 PM
QYPPRDQBKSWS08 9138 Pro 2017 ae4ebb