Was this page helpful?
Thank you!

Comments or suggestions?

Enter Email Address (optional)

Multicurrency Exchange Gain or Loss account

When the multicurrency feature is enabled on a QuickBooks company file, you will notice a new account named Exchange Gain or Loss in your Chart of Accounts.

Why this is happening

When using multiple currencies in a QuickBooks company file, the exchange rate between your home currency and a foreign currency will frequently change. As a result, you may enter a bill or invoice at one exchange rate, and the payments made or received will be at a different exchange rate.

To make this situation simpler, QuickBooks tracks the exchange rate differences to the Exchange Gain or Loss account. This way, you will not have overpayments or underpayments as a result of currency exchange rates.

How to fix it

The exchange rate differences cannot be changed to track to a different account. You can change the name of the Exchange Gain or Loss account, but the type can not be changed. If you would like to show the exchange rate differences in another account, you will need to do a journal entry to move the amounts out of Exchange Gain or Loss.

Also, the exhange gains and losses will appear as Unclassified in your Balance Sheet by Class report. To classify these types of transactions, you must make one or more correcting general journal entries to transfer exchange gains or losses to the appropriate class. This may be more difficult if there are several classes on the transaction.

KB ID# SLN63815
4/27/2017 2:09:43 AM
QYPPRDQBKSWS07 9138 Pro 2017 a41fde