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Foreign Exchange - Immediate CAD/USD exchanges

I have sales and cost of goods in both CAD and USD, where CAD is my home currency. I have not turned on multi-currency but have already inputted over 200+ transactions. I have created individual accounts for each (Sales - CAD, Sales - USD, COGS - CAD, COGS - USD). I always convert funds on the same day of transaction to avoid any FX exposure. A sample transaction is:

 

Revenue: 10 units x $100 CAD per unit = $100,000 CAD (which they pay immediately)

Costs: 10 units x $50 USD per unit = $50,000 USD

FX: 1.32

 

$100,000 CAD is deposited in my CAD bank account and I transfer $66,000 CAD to USD (@ 1.32) = $50,000 deposited in USD account and then sent to my supplier. How do I record this transaction?

 

Currently I have:

1. Sales Receipt = $100,000 deposited to CAD bank

2. Vendor Bill = $50,000 withdrawn from USD bank

 

I'm trying to close the books for this year and will use multi-currency moving forward but trying to figure out a way to convert all my previous transactions to CAD.

 

1 Comment
QuickBooks Team

Re: Foreign Exchange - Immediate CAD/USD exchanges

Hi there,

 

Thanks for taking the time to post in the Community. It's important you enter your transactions the best way possible in order to avoid any discrepancies in the future. To make sure the transactions are handled accurately, I recommend reaching out to an accounting professional. If you're not in contact with one, I recommend searching for one on our website using this link here.

 

Let me know if you have other questions. I'm here to assist.