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kibby11
February 23, 2024
Question

bank reconciliations - transfer between Cdn $ and US$ accounts

  • February 23, 2024
  • 1 reply
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Bank Reconciliation problems:

I have a Cdn $ and a US$ account.  When I have tranferred $ from the Cdn to the US, I recorded it as a transfer to USD.  I have then classified the transfer in as a transfer from Cdn.  For example, I tranferred 26k Cdn out of chequing to USD. This is classified as a transfer to USD in banking transactions. 

The amount I see in the USD account is a transfer in of 19k, the US$ equivalent.  That is classified as a transfer in from chequing.  

Both transactions have been categorized.  But the Quickbooks balance of the USD account is 26k (the Cdn amount?!!).

 

I have called the quickbooks helpline several times.  They can't provide me a solution beyond doing a journal entry to correct the bank account with a debit to retained earnings.  

 

Has anyone else encountered this problem?  

1 reply

A
Alex M
February 24, 2024

Hi there kibby,

 

Thanks for reaching out about your multicurrency transfer.  QuickBooks Online is a great tool able to help you keep track of sales and expenses so you can see the profitability of your company. I can provide some information about transfers between accounts.

 

if your QuickBooks account has multicurrency turned on, and one account is set in USD in QuickBooks while the other is set in CAD, when creating any transaction between these accounts like a transfer, there is an exchange rate associated with the transaction. If both the amount of CAD and USD is the same, then the exchange rate for the transactions is set to 1 USD = 1 CAD. To change this for the transaction, go to the Accounting tab, then Chart of Accounts. Find the USD account, then click on Account History. From this list of transactions, find the transfer in question, then click on it to open a menu to modify the transaction. In the exchange rate box shown, then should be a box allowing you to enter a custom exchange rate. You'll need to modify the exchange rate so that the value in CAD and the value in USD correspond to the amounts seen in your bank accounts in real life.

 

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

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