So I'll try and lay out the scenario as simply as possible as something appears to have changed with QBO recently:
Base currency is GBP
Sales invoice in question below is in EUR
Bank account is a EUR bank account
- bank feed shows a deposit in bank account that can be matched to an outstanding sales invoice (for eg. €1200)
- click match to match €1200 bank deposit to outstanding €1200 sales invoice dated 20.10.20
- view the customer's account/transaction list, and the €1200 receipt is being shown with a 1:1 exchange rate between € & £ when viewing the 'receive payment screen', thus in effect saying that the €1200 receipt is equivalent to a £1200 receipt and creating a realised exchange gain/loss as a result.
- if you click on the date field, alter it to another date and then set it back to the correct date it then updates the exchange rate to the actual rate (0.912759)
This is obviously a large amount of additional work and makes the matching from the bank screen useless if we then have to go into each transaction and mess about to get the correct exchange rate to be applied.
What is causing this initial/default setting of a 1:1 rate when matching deposits from the banking screen?
Thanks in advance for any insight.
I appreciate you for sharing detailed information here in the Community. I know going to each transaction takes too much time so let me help you fix the problem in QuickBooks.
Since the exchange rate updates when toggling the dates, the browser's stored cache may be full. It can cause unusual behavior in the product, like what you encounter with the currencies.
I'd first suggest logging into your QBO account using a private browser. It doesn't store data in the cache. Thus, it's a great way to isolate browser-related issues.
Use these keyboard shortcuts depending on the browser you're using:
If private browsing doesn't work, use other supported web engine to get the best and most secure experience with the program.
I've also attached an article you can use to make home currency adjustments in QuickBooks: Enter home currency adjustments for your foreign balances.
You're always welcome to post any questions you have in this space. I'll be happy to help you some more. Have a good day.
Thank you for your response, but I can say categorically it is not a cache/web browser issue (am a web developer in the other half of my working day).
The 1:1 exchange rate is being applied at the time the receipt is matched on the banking screen. I have just repeated the action, and never visited the receive payment screen to check, but can see that a rate of 1:1 Euro->GBP has been applied to the receipt as this is shown on the realised gains and losses report.
It seems to me that their is a bug that the correct exchange rate is not applied at the time of matching a bank receipt on the banking screen to an outstanding invoice.
Hello again, @itsonlymelee. I appreciate your prompt response.
Right now, QuickBooks Online (QBO) uses the most recent exchange rate from the Markit. Thus, the rate showing in your QBO account changes day by day depends on the new rate. To resolve the issue, you can manually edit the rate if you'd not prefer using the 1:1 exchange rate.
If you have further questions about this process, let me know by commenting below. I'm always here for you. Have a nice day.