bank transfers between multicurrency accounts, why doesn't it do it correctly

Thank you for reaching out here in the Community, Nicholas. When transferring funds between multicurrency accounts, QuickBooks uses the exchange rate you've entered at the time of the transfer.

To resolve this, I suggest checking the exchange rates by going to the Gear icon.

Here's how:

1. Go to the Gear icon, then select Currencies.
2. Double-check on the exchange rates if they are still accurate.

If the exchange rates are correct, I recommend logging out and then logging back into your QuickBooks account. This helps refresh the data and resolves minor glitches that might be causing the issue.

Don't hesitate to reply here if you still have concerns related to QuickBooks. We're here to help.

My QBO account allows multicurrency and is switched and I have been using it the last 2 to 3 years. And my USD account is in USD.

The Transfers between USD chequing and CDN chequing is correct to bank accounts and are posted correctly in each chart of accounts. However, when I create a General Ledger report for the fiscal year, the report uses the CDN amount of the transfer in the USD. The CDN account is OK and is correct.

Therefore there is a disconnected between them.

Thanks for getting back to us with more details, Nicholas. Your transfers are actually posting correctly. The difference you’re seeing comes from how the General Ledger works in QuickBooks Online.

The General Ledger report always shows everything in your home currency (CAD), even for USD accounts. So your USD transfers are being converted to CAD in the report, which is why the numbers don’t match what you see in the USD account register.

You can review your home currency, the exchange rate used in transfer, and compare the reports. Here's a link for reference about multicurrency: Set up and use Multicurrency in QuickBooks Online.
 

Let us know if you need anything else. We're here to help.

OK. However, what happens to USD account activity that does not get transferred ever. Eg. Deposit of USD direct, service fees and bank charges. None of these activities really need to be converted right? Since they are pure USD transactions and do not get converted.

Hi, Nicholas. That’s a great question regarding those pure USD transactions. To clarify, every transaction is converted to CAD within the General Ledger (GL) report, without exception.
 

While your USD account register tracks deposits and fees in their original currency, the General Ledger automatically converts that activity into CAD based on the exchange rate from the specific transaction date. This applies to all USD activity, even if the funds are never physically transferred or converted to another account.
 

QuickBooks Online (QBO) does this by design to ensure your financial reporting remains consistent in your home currency. Even if the money stays in your USD bank account, the GL reflects its CAD value so that all accounts can be accurately totaled and compared. There are no "exempt" transactions, the system converts everything automatically to maintain a unified reporting standard.

Please don't hesitate to leave us a response if you have other questions or concerns.