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Wadd
June 16, 2022
Question

Exchange Rate Loss or Gain

  • June 16, 2022
  • 1 reply
  • 0 views

Hi! We invoice in CAD, but a customer paid us in USD (their head office is in the US). When we deposited the cheque, the exchange rate at the time ended up in us taking a loss against the original value showing in QBO. How do I account for this difference? Thanks :)

1 reply

A
Alex M
June 16, 2022

Hi there Wadd,

 

It's vital that all your transactions be entered correctly so that your books can be well balanced. QuickBooks Online is a great tool able to help you keep track of expenses as well as sales in order for you to be able to see the profit of your business. I can point you in the right direction for assistance with this payment.

 

As this invoice was entered in CAD and the payment was done in USD, there isn't a specific way in the program dedicated to entering this type of situation. You may need to create some form of Journal entry so you can affect another account other than the bank to represent the loss. In order to know how you should be entering this transaction in your books, I recommend speaking to your accountant. They'll be able to guide you in the choice of transaction type as well as how to affect each account in order for your account balances to be accurate after the transaction. You can invite your accountant to your books by going to the My accountant tab. In that section, you can also find an accounting professional who has experience using QuickBooks near you by clicking on the Find a pro to help button.

 

If you have any other questions, feel free to reach out here.

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