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Home currency adjustments in QuickBooks

by Intuit•14• Updated 1 month ago

Learn how to update the home currency value of your foreign balances so your reports reflect current exchange rates.


What is a home currency adjustment?

A home currency adjustment recalculates the home currency value of foreign balances using a new exchange rate.

  • Accounts affected: Balance sheet accounts, including accounts payable, accounts receivable, and bank accounts
  • Unrealised gains or losses: On accounts payable or receivable; occur on paper only and aren’t shown in the general ledger
  • Realised gains or losses: On bank or credit card accounts; occur when transactions are completed
Requirements: QuickBooks Online Essentials, Plus, or Advanced, with multicurrency enabled. Adjustments do not change the foreign currency balance.

When to enter an adjustment

  • Usually at the end of a reporting period to keep reports accurate
  • Books must be open; closed books can’t be adjusted
  • Consider checking with your accountant before making adjustments
  1. Go to Settings (gear icon) and select Currencies.
  2. Find the currency you want to adjust.
  3. Under the Actions column, select the small arrow â–Ľ, then choose Revalue currency.
  4. Select a date for the adjustment (today or a past date).
  5. Choose whether to use the market exchange rate or enter a custom rate.
  6. Select the account(s) to apply the revaluation.
  7. Select Revalue.

Tip: QuickBooks saves only one exchange rate per day per account. This rate is used to calculate unrealised gains or losses.

  1. Go to Settings and select Currencies
  2. Under Actions, select Revalue currency
  3. Open the Revalue history tab
  4. Displays past revaluations, dates, exchange rates, and links to journal entries
  • Profit and Loss
  • Balance Sheet
  • Customer Balance Detail (customise to show unrealised gains/losses)
  • Supplier Balance Detail (customise to show unrealised gains/losses)
  • Statement of Cash Flows

Tip: Revalue currencies immediately before running reports to get accurate figures

Why do some journal entries show 0.00?
Zero-amount entries record the date, currency, and exchange rate used. Non-zero entries show realised gains or losses.

Can I edit the journal entry?
You can change the journal number, memo, or add attachments. You can’t change the date, amounts, or exchange rate. To update those, delete the entry and run the adjustment again.

Where can I see adjustment history?
Go to Settings > Currencies > Revalue currency > Revalue history tab.

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