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C
CGLog
August 11, 2021
Solved

GL entry posted but isn't balanced due to foreign exchange.

  • August 11, 2021
  • 2 replies
  • 0 views

My balance sheet wasn't balancing and it turns out there was an entry in the GL that was posted (but wasn't balanced). It has to do with QB's automatic foreign exchange function, but I'm not sure how it could be posted when credits didn't equal to debits. 

 

Original amount    1,268.75 USD

Home currency amount     1,527.79 CAD

 

Transaction in GL:

Bank    1,527.79 CR

AP       1,527.79 DR

Foreign Exchange   10.50 CR

 

Total credit   1,527.79

Total debit    1,538.29

 

How do I adjust out the F/X portion when there's no other side to adjust?

Best answer by CGLog

Deleting/re-entering the transactions solved the issue.

 

I'm disappointed in this accounting system where basic accounting mechanism isn't working out.

2 replies

N
Nick K
August 11, 2021

Hi CGLog.

 

Making sure all entries and accounts are correct is the key to good bookkeeping. I'd be happy to point you in the right direction on how to get your foreign exchange corrected. 

 

QuickBooks Online makes receiving foreign currency easy by downloading the newest exchange rate daily. In order to correct any entries made by foreign exchange I recommend reaching out to an accountant to first make sure it needs to be corrected and then how to correct it. This is due to accountants being trained on how these entries are suppose to show up and how to correct them if needed. If you don't have an accountant no worries, we can help. You can go to My Accountant>Find a pro to help in your QuickBooks Online account to find one in your area.

 

If you have any questions let us know and we'd be happy to help.

C
CGLogAuthor
August 12, 2021

I'm an accountant and this is a system issue.

 

F/X entries are added when the foreign amount of the credit doesn't match the foreign amount of the debit. How can the system add a F/X entry when credit already equal to debit? As well, I can't post a non-balancing entry in JE module, but the system can?

 

As well, the entry was posted off balance. No matter what manual entry I post to correct this, the whole thing would still be unbalanced.

 

I'm going to try deleting the invoice and payment. Hopefully this solves the F/X problem.

C
CGLogAuthorAnswer
August 13, 2021

Deleting/re-entering the transactions solved the issue.

 

I'm disappointed in this accounting system where basic accounting mechanism isn't working out.

J
JamesM4
August 13, 2021

Hello CLog. Thanks for getting back to us. I'm happy to learn you've solved the issue. Your feedback on this is valuable and I'll make sure it gets into the right hands. In the meantime, feel free to ask other questions, I'm here to assist. 

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