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Frequent Contributor *

Foreign currency bank account balance

I have reconciled my USD bank account to nil as per the statement but when I run a transaction report, QB shows that there is a balance.

 

Yet if I go to run the next reconciliation, the brought forward is nil.

 

What is wrong and how can I fix this please?

 

Thanks.

Solved
Best answer 04-30-2019

Accepted Solutions
QuickBooks Team

Re: Foreign currency bank account balance

You're welcome, E21J, and thank you for the additional details.

 

When you transfer the funds from your USD bank account to your GBP bank account, please be sure to choose US Dollar as the transfer currency. Then, you will enter the USD amount and the exchange rate at that time. This will zero out the balance in your USD account.

 

 

Please let me know if you have other questions.

10 Comments
QuickBooks Team

Re: Foreign currency bank account balance

Hi E21J,

 

It’s good to hear to that you’re able to reconcile your account.

 

Reconciliation will not affect your account balance unless you create an adjustment entry, which I believe you didn't have since you got a nil difference.

 

On the other hand, the balance you see is the account balance within the period specified in your report. What report is it, by the way?

 

Thanks in advance for your reply.

Frequent Contributor *

Re: Foreign currency bank account balance

It shows a balance on the balance sheet, both on the face of it and then if I drill down into the individual line for the account.

 

Many thanks.

QuickBooks Team

Re: Foreign currency bank account balance

Thanks for getting back to us, E21J.

Reconciliation is not a posting entry.

It does not reduce the balance of your balance sheet unless you created a transaction.

 

You might want to compare each transaction recorded on the register versus the transactions showing on the balance sheet. This will help us identify as to where the amount is coming from.

If you have other concerns, I'm always here to help.

Frequent Contributor *

Re: Foreign currency bank account balance

Thank you.

 

I do understand that the reconciliation is not a posting entry.

 

What I am seeking to understand is why when the following places show the account balance to be zero:

1) the Chart of Accounts - zero balance on USD account

2) account register - zero balance on USD account

 

the Balance Sheet and Account Transactions report show a balance of around a $100.

 

Many thanks.

 

 

 

 

QuickBooks Team

Re: Foreign currency bank account balance

Thank you for getting back to us, @E21J.

 

Allow me to chime in and provide some information about the account balance.

 

Just to clarify, are these transactions recorded to a different currency? If so, the exchange rate of this currency is set per transaction. So even the balance in the Chart of Accounts has zero balance, it does not convert the report to Home currency by running balance, but converts per transaction.

 

Also, when converting per transaction to Home currency and total them to the report, it'll cause a balance even if the bank balance showing zero for foreign banks. That means, your Balance Sheet and Account Transactions report will have the balance but your Chart of Accounts have zero.

 

That answer your question. Let me know if you have any other questions. I'll be around if you need any help.

Frequent Contributor *

Re: Foreign currency bank account balance

Ok, thank you for your reply, @Mark_R .

 

How do I make the Balance Sheet and Account Transactions show zero at a given date as this is what I need to do because there is nothing in the account.

 

Many thanks.

 

Frequent Contributor *

Re: Foreign currency bank account balance

Thanks for your replies @Mark_R  and @GlinetteC .

 

I have been through the transactions on the BS report and compared them to those on the register as suggested by @GlinetteC .  This shows that every time we received some money in USD and then converted that money and transferred it to the GBP account a couple of days later, there was a small variance.  Overtime, these variances have accumulated and now amount to c. £100.

 

 

Please can you advise how I can adjust this home currency balance to zero so that my balance sheet agrees to the bank statements at a given date?

 

If I am not able to do this, my balance sheet will show a balance in the USD account which does not exist.  If there are no USD in the USD account, I am not able to withdraw any whether in USD or GBP and therefore, no amount should show on the Balance Sheet.

 

Many thanks.

QuickBooks Team

Re: Foreign currency bank account balance

Thanks for the reply and for the additional details, E21J.

 

I would recommend consulting an accountant to help you with the adjustment.

 

Going forward, you can let QuickBooks calculate the gain or loss for you, so you won't have to receive money to a USD account, convert, and then transfer to a GBP account. Normally, you can receive the payment from your customer like receive the actual amount on the invoice. Then, when you deposit it to your bank account (GBP) that's the time you enter the exchange rate, so QuickBooks will calculate the exchange gain or loss for you.

 

 

 

If you have other questions, you can always go back to this thread.

Frequent Contributor *

Re: Foreign currency bank account balance

Thank you for this @JessT .

 

However, please can you advise the best way to input these transactions when the funds are received to a USD bank account?  It is great that I can do this in principle however, it is not what actually happens.  As we are not able to receive USD into our actual bank account (as against the QB one), we receive the money into our USD bank account and, then once we have received the funds (checked via online banking), we transfer it to our GBP account.  So, these are transactions which actually happen via the banks rather than just the way it has been done in QB.

 

Many thanks.

 

QuickBooks Team

Re: Foreign currency bank account balance

You're welcome, E21J, and thank you for the additional details.

 

When you transfer the funds from your USD bank account to your GBP bank account, please be sure to choose US Dollar as the transfer currency. Then, you will enter the USD amount and the exchange rate at that time. This will zero out the balance in your USD account.

 

 

Please let me know if you have other questions.