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daNiSMors
September 27, 2022
Solved

How to avoid FX loss for transactions in non-home currency?

  • September 27, 2022
  • 2 replies
  • 0 views

Our QBO is set up for multi-currency and our home currency is EUR.
The invoice is sent out on Sep01 for 30GBP (Registered in QBO) and the customer pays on Sep07 30GBP on Stripe (Registered in QBO, linked to the invoice).
On both the invoice and the received payment, we have to fill in the GBP-EUR exchange rate. By default, we use the exchange rate of that day.

The problem is in QBO, it records an FX gain/loss for these transactions while there was no actual foreign exchange.

Best answer by GebelAlainaM

Hello there, @daNiSMors. I'm here to share some details on avoiding FX loss for non-home currency transactions.

 

To avoid this, let's ensure that the exchange rate is the same as the invoice and payment transaction. You'll need to open the payment transactions and edit the exchange rate to match it with the vendor invoice exchange rate. That way, the gain or loss will be canceled.

 

You can refer to this article to learn more about home currency adjustments: Enter home currency adjustments for your foreign balances.

 

You can pull up the following reports and customize them if you want to view the unrealized gains or losses in your company:

 

  • Profit and Loss report
  • Balance sheet
  • Customer Balance Detail report
  • Vendor Balance Detail report
  • Statement of Cash Flows

 

Here's how:

 

  1. Go to the Reports.
  2. Locate and open the report.
  3. Select Customize.
  4. From the Customize report window, open the Rows/Columns section and select Change columns.
  5. Tick the Unrealized Gain or Loss checkbox.
  6. In the Aging section, under the Aging method, select Report date.
  7. Select Run report to save changes.

 

For more details, please refer to these articles:

 

 

Please let me know in the comment section if you have clarification on managing currencies in QuickBooks. I'll be happy to assist you anytime. Take care!

2 replies

Fiat Lux - ASIA
Fiat Lux - ASIA
September 27, 2022

Do you have a GBP bank account?

D
daNiSMorsAuthor
September 27, 2022

Yes, we have.

G
GebelAlainaMAnswer
September 27, 2022

Hello there, @daNiSMors. I'm here to share some details on avoiding FX loss for non-home currency transactions.

 

To avoid this, let's ensure that the exchange rate is the same as the invoice and payment transaction. You'll need to open the payment transactions and edit the exchange rate to match it with the vendor invoice exchange rate. That way, the gain or loss will be canceled.

 

You can refer to this article to learn more about home currency adjustments: Enter home currency adjustments for your foreign balances.

 

You can pull up the following reports and customize them if you want to view the unrealized gains or losses in your company:

 

  • Profit and Loss report
  • Balance sheet
  • Customer Balance Detail report
  • Vendor Balance Detail report
  • Statement of Cash Flows

 

Here's how:

 

  1. Go to the Reports.
  2. Locate and open the report.
  3. Select Customize.
  4. From the Customize report window, open the Rows/Columns section and select Change columns.
  5. Tick the Unrealized Gain or Loss checkbox.
  6. In the Aging section, under the Aging method, select Report date.
  7. Select Run report to save changes.

 

For more details, please refer to these articles:

 

 

Please let me know in the comment section if you have clarification on managing currencies in QuickBooks. I'll be happy to assist you anytime. Take care!

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