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Influence Map CIC
Level 1

Discrepancy in Chart of accounts and Trial Balance for a bank account in foreign currency

We have recently closed a bank account in a foreign currency; the Bank reconciliation (which is in the non-sterling amount) always balanced, and Chart of accounts showed nil balance in the account (in the non-sterling currency) on the date the account was closed / date of last transaction. Then my accountant, noticed a remaining GBP balance in this account but in Trial Balance. I have meticulously been posting each transaction in this foreign currency bank account to correspond to the correct FX daily rate in the home currency (based on our bank rates and not Quickbook rates) so I do not understand why there is a remaining GBP ££ value in this account in Trial Balance, when Chart of Accounts showing nil $$. The accountant posted a journal to clear the GBP amount from the Trial Balance (since the account is empty and now closed) but now this GBP amount is in Chart of accounts, which is no longer nil $$.

Anyone has any explanation what may have happened there? Where does the difference comes from when workinig with non-home currency bank accounts (USD, EUR etc): you can see a well balanced account in non-GBP currency in Chart of Accounts (correct per Bank statements)  and then Trial Balance showing an incorrect amount in GBP?

3 REPLIES 3
Ashleigh1
QuickBooks Team

Discrepancy in Chart of accounts and Trial Balance for a bank account in foreign currency

Hello Influence Map CIC, welcome and thanks for posting on the Community page, the reason it is still showing a figure is it could be due to the exchange rates as usually it is reported in the home currency and since qbo uses the exchange rates at the time transactions were entered into the system. You can try to do re-evaluate currency on the settings to fix the discrepancy on the TB report. If you still have any issues, we would advise that you reach out to support via chat or phone (0808 234 5337- the line is open mon to fri 8am-7pm) so you can set up a screen share with the agent so the issue can be looked into more for you and resolved. Thanks

Influence Map CIC
Level 1

Discrepancy in Chart of accounts and Trial Balance for a bank account in foreign currency

Hi Ashleigh1 - thanks for the reply. I just wanted to note that I have been manually adjusting the FX rates of each transaction in "Bank Transactions -> For Review" and all transactions, converted into the Home currency (GBP), are correct as per the FX rate on the day. Do you mean that the foreign currency has to also be adjusted in "revalue currency" menu (in Settings)?

Even though I have posted each transaction with the correct FX rate, at the end of each month when I run the Trial Balance (and Balance sheet) I get incorrect GBP value for this Bank Account - while in Chart of Accounts I have the correct Non-Sterling value (which is reconciled as per Bank statements). 

Ashleigh1
QuickBooks Team

Discrepancy in Chart of accounts and Trial Balance for a bank account in foreign currency

Hello Influence Map CIC, thanks for coming back to us, It is due to the exchange difference.for example if $100 goes in one day worth £70 and comes out the following week worth £68 there will be a $0 balance but a £2 balance remains due to the exchange rate difference. Revaluing the currency is the correct thing to do to resolve that difference you are having.  You can reach out to support via chat or phone (0808 234 5337- the line is open mon to fri 8am-7pm) and set up a screen share with the agent so the issue can be looked into more for you and resolved. Thanks

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