I have two bank accounts in different currencies both reconciled through the year. However when I review my P&L it shows an income when I actually have a loss.

We appreciate you for contacting the Community, Laura.

I'd recommend checking the exchange rate you set to convert the transactions in one of your bank accounts to your home currency. It can cause discrepancies in your profit and loss statement if the exchange rate used is inaccurate. Here's how:

1. Go to the Gear icon and select Chart of Accounts.
2. Locate the specific bank account and click on the drop-down arrow to the left of the account name.
3. Click Edit, then scroll down to the Currency section and check if the correct exchange rate is selected.
4. Click Save and close.

If the exchange rate is correct, you may need to review the transactions in your foreign currency bank account to verify they are classified correctly in your profit and loss statement. 

It's also possible that there may be an issue with the reconciliation, so you may want to check to make sure all transactions are accurately matched and reconciled.

You can utilize these articles to guide you on how to categorize your transactions and reconcile your account flawlessly:

• Categorize and match online bank transactions in QuickBooks Online.
• Reconciling account in QuickBooks Online.

I'm adding this article to learn how to use bank rules to automatically categorize transactions from your bank: Set up bank rules to categorize online banking transactions in QuickBooks Online.

Feel free to drop by the Community whenever you have further concerns regarding your transactions. Have a great day ahead!

Thank you. Under Chart of Accounts I see only an edit option to the right of View Register, and then under Edit I don’t see anything related to Currency. 

Hi lauralobo,

Thank you for getting back to us. I'll continue to help you locate the cause of the extra income in your Profit and Loss.

If you believe that the extra income that is not supposed to be in your Profit and Loss is caused by the currency exchange rate in the two accounts you mentioned, the only thing that you want to look into is the Exchange gain or loss amount on your P&L report. If it shows a large positive number, it means you've gained a lot from the exchange rate.

What you can do is click the amount to see the list of transactions comprising the Exchange gain or loss amount. Then, add the Exchange rate column to find out which transaction has a suspiciously erroneous exchange rate. You can do that by clicking the small Gear icon within the report, putting a checkmark in the Exchange Rate checkbox, and clicking Run report.

Check the added EXCHANGE RATE column on the rightmost side of the report and see which transaction has a suspiciously-large exchange rate. You can click it to open that transaction and update the exchange rate. This will fix the issue.

Feel free to go back to this thread if you need more help with your report. Take care and have a great weekend.