When you transferred or moved out cash from your TWD bank account, QBO used an exchange rate at the time of the transaction, ZX0607. Thus, your Balance Sheet report doesn't need to show matching amounts for bills and payments due to these currency fluctuations.
Here's how it works:
When you enter a bill in QBO, the system uses the exchange rate on the bill date to convert the amount into your home currency. So, if you have a bill in a foreign currency, it gets converted to your home currency based on the exchange rate at the time the bill was created.
Additionally, when you make a payment on that bill, QBO uses the exchange rate on the payment date. This could be different from the exchange rate on the bill date. These differences in exchange rates between the bill date and the payment date are recorded as foreign exchange gains or losses. This is important because it affects your financial records, showing any gains or losses from currency rate changes.
These gains or losses from exchange rate variations are shown in your financial statements, like the Balance Sheet, which helps you understand the financial health and performance of your business.
Moreover, in order to zero out your balance in home currency, you can create a Journal entry to offset the credit balance. By doing so, I'd highly recommend contacting your accountant to know the appropriate accounts to be used. This way, your books will remain accurate.
Also, here's an article that you can check to learn more information about how QuickBooks uses exchange rates for foreign currency transactions: Learn about exchange rates in QuickBooks Online.
Lastly, you can take advantage of our QuickBooks Live Assisted, our team offers real-time assistance and provides guidance with any complication--from recording transactions to reconciliations. Let's enhance your financial management effortlessly.
Let me know if you've further questions regarding your home currency not being emptied in your Balance Sheet by revisiting this thread. I'm always here to help at any time..
