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Core2022
December 29, 2022
Question

Reconciliation of Foreign Bank Account

  • December 29, 2022
  • 1 reply
  • 0 views

Earlier this year, we zeroed out our foreign currency account (Euro account) by transferring the entire balance in Euro's from the account.  The account reconciled with a zero balance - In Euro ONLY.  There is still a USD equivalent balance that should also be zero. 

Each one of the transactions in this account were recorded at the time of the transaction in the correct F/X amount, but for whatever reason, my reconciled, zero euro account balance = +6k in USD balance on balance sheet.  

 

How can I correct this.  I do not have a 6k+ f/x loss on the account, this is completely incorrect.

Please advise.

1 reply

C
ChristieAnn 11
December 30, 2022

Hi there, Core2022.

 

Thank you for visiting the QuickBooks Community. Let me discuss how reconciling a Foreign Bank Account works in QuickBooks. Then, I'll ensure that your USD equivalent balance also shows as zero on the Balance Sheet in QuickBooks Desktop.

 

When you transfer the funds from your foreign account to another specific bank account, you'll have to make sure to choose the Foreign currency as the transfer. Then, enter the foreign amount and the exchange rate at that time to zero out the balance in your foreign account and move it to your USD account. Then, reconcile it to make your account balance.

 

Since you already reconciled the Euro account but there's still a USD equivalent balance that should be zero, I suggest creating a journal entry. This helps show a zero amount in USD. Before doing so, I also recommend consulting an accountant for additional guidance and they'll be able to provide you with suggestions on how to properly handle the USD balance that appears on the Balance Sheet. Then, make your account stays accurate.

 

Here's how:

 

  1. Go to the Accountant menu.
  2. Choose Make General Journal Entries.
  3. Fill in the necessary information. Optional: Under Memo, enter the item reference.
  4. Click Save & Close.

 

For extra information, you can open this article: Create a journal entry in QuickBooks Desktop for Windows or Mac.

 

Lastly, you may refer to this article to see various guidelines on how you can fix any reconciliation issues that you might encounter in QBDT: Learn the reconcile workflow in QuickBooks.

 

Always feel free to leave your comments below if you have other questions about reconciling Foreign Bank Accounts in QBDT. I'm always here to help you, Core2022. Have a great day!

C
Core2022Author
December 30, 2022

RE:  When you transfer the funds from your foreign account to another specific bank account, you'll have to make sure to choose the Foreign currency as the transfer. Then, enter the foreign amount and the exchange rate at that time to zero out the balance in your foreign account and move it to your USD account. Then, reconcile it to make your account balance.

 

I did this, but it still shows a USD balance.

I cannot make a USD g/l entry to this account since it is designated as EURO. Even on my chart of accounts list in QB, the account is zero - its only when QB presents the balance sheet in my home currency that the problem exists.

 

Then, when I drill down on the BS item, there it is the 6k balance.  When I add the f/c column = 0.

How do you propose this is corrected.  Each and every item that was entered into this account was done meticulously to represent the USD amount at the time of transfers etc.

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