Multicurrency workaround for subaccount not matching currency of parent account
Hi,
Re: Multi-Currency, what is a "second best" solution for when you have a parent account that's in CAD (or home currency) and a subaccount that's in USD (functional currency)?
QBO is telling me my sub-account needs to be in same currency as my parent account, however the sub-account in reality is USD denominated then rolled up along with the other CAD denominated subaccounts into a Core parent account (that's in CAD).
The parent-sub account relationship is accurate in that this USD sub-account is part of the parent account (i.e., parent account is a portfolio/core investment account).
Why I am Iooking into this is because to date we've needed to reconcile the entire portfolio/parent account in CAD which includes having to convert the USD subaccount into CAD. Yes, everything is given to us on the statement, however sometimes transactions straddle the month end close and a FX fluctuation results - something I was hoping to start avoid having to do by setting up the parent-sub account structure. In theory, the USD subaccount could be reconciled in USD to statement balance separately from the other subaccount (which is in CAD), then I could use QBO's Revaluation module to revalue at month end.
Hope that all makes sense and curious what others might suggest or say about how to do this in practice/in QBO.
Note this is a financial services/advisory firm hence the reference to investment portfolio accounts.
Thanks!
