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Community Contributor *

How do I record the exchange on bank transfers from a U.S funds account to a Canadian account so that everything matches up with Quickbooks and the Bank statement?

**This is fairly urgent as I am trying to close my year end.  Thank you

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Best answer 03-11-2019

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Established Community Backer **

Once an account is labeled CAD, it cannot be changed. A n...

Once an account is labeled CAD, it cannot be changed. A new Bank type Account must be created, selecting US $ as the Currency.

To utilize the Multicurrency function correctly, an Exchange Gain/Loss (Expense type) account must be created in the COA.

Then, from the Company tab on the main toolbar, select Manage Currency>Currency List to create a list of currencies used (in your case US $). Next, record (or download) the current exchange rates.

To record a transfer from your CAD bank account to US $ bank account in QB, use the Transfer Funds function from the Banking Menu. Be sure to include the applicable exchange rate. The exchange variance will automatically be recorded in the Exchange Gain/Loss account.

If the US $ account will be used for transactions other than bank transfers, corresponding US $ accounts must be created. For Instance, if payments will be made to US Suppliers, a US $ Accounts Payable Account must be created as well as Vendor Profiles with US $ selected as the Currency used. Same principle applies to Customers and A/R.

You should be aware that although the accounts are now correctly set up, most reports will only be reported in your Home Currency, but can be customized to display US Funds if necessary. The Balances in your COA are displayed in the Currency of the Account.

3 Comments
Established Community Backer **

Once an account is labeled CAD, it cannot be changed. A n...

Once an account is labeled CAD, it cannot be changed. A new Bank type Account must be created, selecting US $ as the Currency.

To utilize the Multicurrency function correctly, an Exchange Gain/Loss (Expense type) account must be created in the COA.

Then, from the Company tab on the main toolbar, select Manage Currency>Currency List to create a list of currencies used (in your case US $). Next, record (or download) the current exchange rates.

To record a transfer from your CAD bank account to US $ bank account in QB, use the Transfer Funds function from the Banking Menu. Be sure to include the applicable exchange rate. The exchange variance will automatically be recorded in the Exchange Gain/Loss account.

If the US $ account will be used for transactions other than bank transfers, corresponding US $ accounts must be created. For Instance, if payments will be made to US Suppliers, a US $ Accounts Payable Account must be created as well as Vendor Profiles with US $ selected as the Currency used. Same principle applies to Customers and A/R.

You should be aware that although the accounts are now correctly set up, most reports will only be reported in your Home Currency, but can be customized to display US Funds if necessary. The Balances in your COA are displayed in the Currency of the Account.

Established Community Backer **

There are several considerations: Are you using the Multi...

There are several considerations:

Are you using the Multi currency Function? Do you have both Canadian and US Funds Bank Accounts set up in QB? How are the transfers recorded in QB?

Community Contributor *

I just recently turned on the multi currency function and...

I just recently turned on the multi currency function and have both Canadian and a US funds bank accounts.  The US funds bank account on my chart of accounts says CAD as I answered this as my home currency.  How can I change it to US for the US account??  I download all transactions from the bank but the transfers if any between the U.S. and Canadian account are show as the amount transferred out for example and then a negative amount for the exchange rate.  Very confusing please help