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eve3
July 30, 2020
Question

Messed up my Undeposited Funds G/L by changing the exchange rates for numerous transactions starting in 2018

  • July 30, 2020
  • 1 reply
  • 0 views

I've botched up my Undeposited Funds account starting in 2018. The outstanding balance was only -$229.25 for that yearend. I didn't notice that the account was out of balance until the end of 2019.

 

At the end of 2019, the account had an additional balance of -$62703.41. To clear these amounts, I passed two journal entries: one for each year. These were:

Dr Undeposited Funds

Cr Exchange Gain or Loss

 

These journal entries cleared out my Undeposited Funds account but then I had these items in the list when I want to make a deposit.

 

I since now deleted those journal entries so the balance in my Undeposited Funds account is out again. Thought starting from scratch might be best.

 

How do I best clear the balance? 

 

1 reply

N
Nick K
July 30, 2020

Hello eve3,

 

Making sure your accounts show the correct balance when using multi currency is important to make sure your books stay accurate. I can help point you in the right direction.

 

A great part of multi currency in your QuickBooks Online Essentials or Plus account is that exchange rate updates nightly so you know the balances will be correct when you enter them. When entering journal entries to balance out an account it's always best to consult your accountant before hand as they have extensive training in this. I'd recommend contacting them when trying to enter a journal entry for this reason. If you don't have an accountant we still have your back. You can go to our find an accountant page to find one in the area to help get this entered.

 

If you need help creating a journal entry in QuickBooks Online you can follow the steps in this link.

 

Have a great day!

E
eve3Author
July 31, 2020

Thank you for the prompt response. Can you please outline what entries are generated on the back-end of QBO to handle exchange rate difference?

e.g.

Yesterday: US deposit goes into CND Undeposited Funds with an FX rate of 1.3000.

Today: Funds deposited into CND account with an FX rate of 1.258

 

The difference in my books resulted from changing all of the Undeposited Funds to par (or 1.000) after the fact. 

Thanks again,

Eve

 

J
JamesM
July 31, 2020

Hi eve3. I want to make sure you get the support you need with this. I recommend reaching out to our support team using this link. One of our agents will be happy to take a look at your screen and assist. Feel free to ask other questions. 

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