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Thomas Kortstee
February 23, 2023
Question

different daily rates

  • February 23, 2023
  • 2 replies
  • 0 views

Good morning,

We have started the 2022 annual audit. Our reporting is in USD. However, EUR invoices are also paid. To our horror, different daily rates are used by Quickbooks between different companies. Example: On Dec 21, 2022, Company I deposited EUR 205,000 to Company II.
Company I Quickbooks records use a rate of 0.998318 and Company II records use a rate of 1.0646681.
Looking at the correct daily exchange rate on the internet, I would say that 1.06 is the correct exchange rate. This is 1 example, but applies to several transactions in different companies. How can this be resolved in the short term?

Thank you in advance,

2 replies

J
jamespaul
February 23, 2023

Hello, Thomas.

 

I'll hop in and help you resolve the exchange rates for the EUR currency in QuickBooks. 

 

We can edit those invoices with the correct exchange rate of 1.06. Simply open one, then change the rate in the EUR to USD box. 

 

 

This would also change the payment linked to the invoice. So, let's pull up the linked payment and adjust the values if needed. 

 

Be careful when doing this since this will affect your books, especially on a closed accounting period. Reach out to an accountant if you need help with the corrections. 

 

Although, we can also use the Revalue Currency function. A guide can be found here: Enter home currency adjustments for your foreign balances.

 

However, this works best if the invoices are unpaid. If you'd like to do this, I would still recommend consulting with an accountant (since this creates a journal entry for adjustments).

 

They can guide you through the steps and let you know if this is an ideal resolution for the rate correction. 

 

If you need help closing out your books after making the corrections, I'll add this article: Reconcile an account in QuickBooks Online. 

 

Let me know if there's anything else you'd like me to address about the currency exchange rates. If you need help with your entries or certain reports, add the details below and I'll help you out. 

D
DA48
May 7, 2024

Good Day

 

My auditors are requesting a annual listing of exchange rate used during the year, where can I find these exchange rate?

JaeAnnC
JaeAnnC
May 7, 2024

Thanks for joining in this conversation, @DA48. I'll be happy to help you run a report in QuickBooks Online (QBO) to view a list of your exchange rates this year.

 

In QBO, we can run the Transaction List by Customer or the Transaction List by Vendor report and customize it to show the foreign amount, exchange rate, and currency. 

 

Here's how:

 

  1. Go to Reports and search Transaction List by Customer or Transaction List by Vendor.
  2. If you're on the new report layout, select Switch to Classic View.
  3. Click Customize.
  4. Set the Report period to This Year.
  5. In the Rows/Columns section, click Change columns.
  6. Select the Exchange Rate, Currency, and Foreign Amount boxes.
  7. Click Run Report.

 

Moreover, here's a detailed resource if you wish to adjust the exchange rates on your foreign balances: Enter home currency adjustments for your foreign balances.

 

Keep in touch if you need further guidance about exchange rates in QBO. I'll be more than glad to assist you. Take care and have a great rest of the day.

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