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What are Home Currency Adjustments?

If you have accounts payable or accounts receivable in a foreign currency, you may need to keep track of the changes in exchange rates on your foreign balances.
Note: Home currency adjustment is only available in QuickBooks Online Essentials and Plus.

What is a home currency adjustment?

Home currency adjustments change the home currency value of your foreign balances, recalculating them based on a new rate. These adjustments affect your balance sheet accounts.
Until you recalculate the home currency value of your foreign balances using current exchange rates, your reports show the home currency value based on the exchange rates you used at the time of each transaction.
At the end of a reporting period, when you need your financial reports to show a current home currency value of your foreign balances, you can enter a home currency adjustment.
Note: Home currency adjustments do no affect foreign balance accounts.

How do I create a home currency adjustment?

Note: You must have multicurrency turned on to be able to create home currency adjustments.
  1. Select the Gear icon on the Toolbar.
  2. Under Lists, select Currencies.
  3. Find the currency you wish to make an adjustment for and in its Action column, select the downward pointing arrow.
  4. Select Revalue Currency to bring up the revalue screen.
  5. Select a date (today or a day in the past) to run a currency revaluation.
  6. Select whether you'd like the revaluation to be based on the market exchange rate or a rate you specify.
  7. Select the account(s) you want to apply the revaluation to.
  8. Click Revalue.
Note: For your books to stay accurate and compliant, we can only save one exchange rate per day per account. We use this exchange rate to calculate unrealised gains and/or losses.

What accounts show the home currency adjustment?

The effect of a home currency adjustment can be seen in accounts payable or accounts receivable as an unrealised gain or loss. Home currency adjustments can also be seen in other account types, like bank accounts, as a realised gain or loss.
Tip: It's always a good idea to check with an accounting professional before entering these adjustments.

Now you know about home currency adjustments.

For additional information, check out troubleshooting home currency adjustments.