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Enter home currency adjustments for your foreign balances in QuickBooks Online

by Intuit Updated 2 weeks ago

Learn how to create home currency adjustments in QuickBooks Online.

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.

The effect of a home currency adjustment can be seen in accounts payable or accounts receivable as an unrealized gain or loss. Home currency adjustments can also be seen in other account types, like bank accounts, as a realized gain or loss.

  • Home currency adjustment is only available in QuickBooks Online Essentials, Plus, and Advanced.Home currency adjustments do no affect foreign balance accounts.You must have multicurrency turned on to be able to create home currency adjustments.

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.

How do I create a home currency adjustment?

It's always a good idea to check with an accounting professional before entering these adjustments.

  • If the books are already closed, then you will not be able to revalue currency. Ensure that you have the books opened to do revaluation of the currency.
  • Once the currency is revalued for a particular date with the exchange rate, it won't be revalued again.
  1. Go to Settings Settings gear icon., then select Currencies.
  2. Find the currency you want to adjust.
  3. Under the Actions column, select the small arrow ▼ icon.
  4. Select Revalue Currency.
  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. Select Revalue.

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 unrealized gains and/or losses.

For additional information, see troubleshooting home currency adjustments.

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