Recording Exchange gain or loss

naas-nyankids · ‎January 08, 2020

We made purchases from overseas and vendors billed us in USD. On the import date of each shipment we had to apply the spot exchange rate for import-related tax calculation (prescribed by Customs) and for account recording. Sometime later, we paid for those invoices on different occasions using the exchange rate on each payment date, which resulted in Exchange gain/loss. How can we direct (i.e. post it) these exchange gain / loss to a specified expense account in stead of having them automatically posted to the system-created account "Exchange Gain or Loss"? This is for local compliance.
Thank you.

JonpriL · ‎January 08, 2020

Hello @naas-nyankids,

At this time, there isn't an option to manually create the exchange gain or loss to post it in a preferred expense account. Because this is an adjustment automatically created by QuickBooks after collecting or paying a multi-currency transaction.

Here's an article you can read to learn more about this adjustment and how it works: Frequently Asked Questions about Home Currency Adjustments.

But I'd still recommend contacting your account for additional guidance in manually recording the exchange gain or loss. You can find one through this article: Find an accountant or bookkeeper.

Let me know in the comment section down below if you have any other questions. I'm always happy to lend a helping hand.

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