Clear a undeposited funds entry Canadian funds invoice paid in USD funds.

Hello @accounting126 ,

If you received payment in US Funds and deposited to a Canadian Bank account, presumably the amount that was actually deposited to your bank account would be higher than the $ amount of the payment you received.  You would keep that entry, create a deposit from it, then enter another line in your deposit to account for the US exchange.  The combination of the two lines, (the original US deposit and the added line for exchange), should equal the amount deposited to your Canadian bank account.

You will have to use an income account from your Chart of Accounts for the additional line in your deposit.  You can post that to your Sales account, if you like, or maybe you have an account for the gains you receive as US Exchange, or even a Miscellaneous income account. 

Some people go back and edit their original client invoice and make it the same as the amount received to the bank.  Then when you "receive" your payment in QBO and it goes to the undeposited funds account, it matches your invoice amount.  Then you just have to deposit that one line from undeposited funds to your bank account.  Either way, the exchange becomes part of your income and must be recorded one of the two ways.