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lynnphtr1
September 15, 2022
Question

Home Currency Revalue and Realized/Unrealized Gain/Loss

  • September 15, 2022
  • 1 reply
  • 0 views

Hi Team,

 

I have a question regarding Home Currency Revaluation.

My Home currency is CAD.

I have 1 USD Checking, 1 AR and 1 AP account, all three in USD.

I did the home currency revaluation and this is happen to me:

- The revaluation value of the checking account goes to the exchange gain/loss line in P&L. I assume it's realized gain/loss and taxable.

- The revaluation value of the AP and AR goes to the unrealized gain/loss line in P&L. 

 

Can anyone explain the difference between two? Why when I do the same revaluation, it posts into 2 different categories? 

I hope someone can help to shed some light on this. 

 

Thank you.

1 reply

T
Trish_T
September 15, 2022

Hi lynnphtr1,

 

Thanks for reaching out here.  It's important that you're on the right track when revaluing foreign currency in QuickBooks Online.  I'd be happy to provide some insight here!

 

Unrealized foreign exchange gains or losses aren't realized until a transaction has been completed.  If you have open invoices or bills that haven't had a payment applied to them, you'll want to take a look at them first.  After making a home currency adjustment, your Accounts Payable or Accounts Receivable are shown as unrealized gain or loss.  Your bank accounts will reflect the realized foreign exchange gain or loss.  Here's a helpful guide for your reference, with using the multicurrency feature in QuickBooks Online.

 

If you have any other questions, please feel free to reach back out.  We'd be glad to assist!

 

 

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