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Level 1

Confused with multicurrency and balance sheets

Hi, I'm trying to setup multiple currency but am baffled about the balance sheet. 

Let's pretend on May 1 I sell $1000CAD. The exchange rate is $1CAD = $0.01USD.  I deposit this money into a CAD bank account. The balance sheet shows I have the equivalent of $10USD.

On June 1, the exchange rate is now $1CAD = $1USD. I still have the $1000CAD in my account. However, in QB the balance sheet still shows a $10USD balance..

How do these exchange gains and losses get reflected on the balance sheet?

2 Comments 2

Confused with multicurrency and balance sheets

It's possible that the exchange rates were not yet updated, votrehien3. Thus, the new exchange rate doesn't reflect on the report.

Let's download the new exchanges so you can get an accurate data. Here's how to do it:

  1. Click the Lists at the top menu and select Currency List.
  2. Select the Activities button and choose Download Latest Exchange Rates.

You can also update the exchange rates manually:

  1. In the Currency List window, double-click the currency.
  2. In the Edit Currency window,  choose a date and enter the new exchange rate.
  3. Click OK.

Once you've updated the exchange rates, it will automatically reflect on your Balance Sheet reports.


In addition to that, you might want to browse this article to know more about Multicurrency: Set Up and Use Multicurrency.


Meanwhile, you can customize your Balance Sheet report to see foreign balances:

  1. Open the Balance Sheet report and click the Customize Report button
  2. In the Modify Report window, go to the Display tab.
  3. Under the columns section, mark the following columns:
    • Exchange Rate 
    • Foreign Balance
    • Foreign Open Balance
  4. Click OK.

You can use these reports to see the exchange gains and losses: Realized Gains & Losses or Unrealized Gains & Losses.

Here's how to pull up the report:

  1. Click Reports at the top menu and select Company & Financial.
  2. Choose Realized Gains & Losses or Unrealized Gains & Losses.

Feel free to let me know if you need more help about multicurrencies. I'll be around.


Level 6

Confused with multicurrency and balance sheets

Hi, votrechien3

QB reports will present amounts in home currency also you have the option to view Realized Gains/Loss and Unrealized Gains/Loss Reports.
for each transactions you can enter prevailing exchange rates manually on the relevant
screens e.g. Deposits,Receive payment,Invoice etc.
Also you have the option to update exchange rates through QB move to
Company > Manage currency > download latest exchange rates.


To calculate foreign amounts in the latest exchange rates use Home Currency Adjustment.
Company > Manage currency > Home Currency Adjustment and enter the latest exchange rates
QB will update any exchange rate Gain/Loss based on the rates you entered and the account balances.

Note: Discuss with your tax consultant regarding the Unrealized Gains/Loss for tax purposes.

Comment back for further clarifications / to discuss.


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