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gandhiapaq
October 19, 2018
Question

How is the exchange gain or loss recognized by QB

  • October 19, 2018
  • 1 reply
  • 0 views

We use multiple currency. When vendor invoice us in foreign currency, we use QB rates. I realise that when payment is done QB calculates its own exchange gain or loss. how do i reverse this or cancel it.(where is the transaction?) 

Note : I pass the difference in exchange manually when payment is done.Also change the rate  according to payment conversion (this is done when buying in another currency to pay particular foreign currency) ie. Buy EURO in USD (using USD Bank Account), to pay EURO - these are foreign currency . Home currency is SGD.

Is there any other effective way to post the transaction.

    1 reply

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    username324
    October 19, 2018

    Dear gandhiapaq,

    Good day ! i'm here to help :)

    The exchange gain or loss in QB is recognised via the exchange rate field in the vendor invoice. For example, when we record the vendor invoice at a rate of 1:1.5 and subsequently, we record the payment at 1:2.0, there will be an exchange gain or loss based on the vendor invoice value X the difference in exchange rate (0.5 difference here).

    We can avoid the exchange gain or loss by making sure the exchange rate is the same for the invoice and payment. To do this, we open the payment transactions, and edit the exchange rate to be the same as the vendor invoice exchange rate. The exchange gain or loss will be cancelled/removed.

    Thanks

    tomaszbanas
    tomaszbanas
    October 19, 2018
    Yes, we can edit the exchange rate on the invoice and the payment. However, we still end up with inaccurate data, as QB only allows six decimal places in the exchange rate field. Please advise.
    D
    dtherrien
    May 7, 2019

    Is there a way to assign a class to the exchange difference?

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