I'm working on YE for a company that we acquired - we are a Canadian company. The AR US Aging Report does not match the general ledger. I've started going through to find the discrepancy, and I've found the first one; however, I can't figure out how to fix it.
On the AR general ledger, it shows a CR for the client of $1,512.96; when you click into that payment, you can see it's a US payment of $1,450 with no exchange rate recorded in the payment. If I look into the transaction journal for that payment, you see the Exchange Rate of $62.96 recorded, but I can't find how this was created. The customer's balance is at $0, so the payment isn't throwing their balance off, but it's throwing my AR account off. Any ideas how this happened and how I can fix it so it balances out?
I'm here to help get to the bottom of this and fix the discrepancies of your Account Receivables balances.
The $62.96 you're seeing in the Transaction Journal is the Exchange Gain or Loss amount automatically recorded by the program. It triggers due to the fluctuation in the exchange rate of two currencies that are applied to a business transaction.
For example, an American business commits to pay a Canadian supplier in Canada dollar, but then the U.S. dollar weakens between the date when the supplier issues an invoice and on the payment day.
Since you've already checked the Accounts Receivable account and the A/R Aging Summary, you can create a journal entry to resolve the difference of the amount. Make sure to consult with your accountant as to which accounts to select. They are the best resource of accounting information to ensure your books are accurate come tax time.
Here's how to create a journal entry:
From the QuickBooks Company menu, go to Make General Journal Entries.
In the Make General Journal Entries window, change the Date field.