Fx Gain or loss

Hello there, @Monica1991.

I'll share some insights about foreign exchange gain or loss in QuickBooks Online (QBO), so you can manage your currency and transactions accordingly.

In QBO, foreign exchange gains or losses are profits or losses that have occurred on paper due to changes in exchange rates. Then, they're realized after the transactions have been completed, when money has been collected or paid.

You can check out this article for the complete details and to answer the most commonly asked questions about currency when using the multicurrency feature in QBO: Frequently Asked Questions about Home Currency Adjustments.

Moreover, in case you don't want to have exchange gains or losses in QBO, you'll want to make sure the exchange rate is the same for the invoice and payment.

Also, you may want to check out this article as your reference to guide you in doing business in foreign currencies using QBO: Use multicurrency in QuickBooks Online.

Let me know if you have other multicurrency concerns or questions about managing transactions in QBO. I'm always ready to help. Take care, and I wish you continued success, @Monica1991.

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@Monica1991 wrote: AvalonAccess Login

We are a Canadian company and we use our USD bank account for sending or receiving money from clients that are in US, but why does QBO automatically enters fx gain or loss?

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I appreciate the information and advice you have shared.

A pleasant day to you, Riley69.

You're welcome on behalf of my colleague. Please come back to our office if you need assistance with anything else. Enjoy your day.

I don’t understand why is there a gain or loss when in fact we are using the same currency. We’re not using our canadian account. We use the same currency both in USD so why would there be an exchange rate?

We use our USD Account not Canadian so why would there be fx gain or loss? I don’t understand. We are using the same currency. If we’re using Canadian then ofcourse there’s a gain or loss but we are using USD account here same as the client.

Good day, Monica1991.

Allow me to share details that can explain where the gains or losses are coming from. 

A loss or gain is an effect of a home currency adjustment in QBO. This type of adjustments change the home currency value of your foreign balances, recalculating them based on a new rate. It also affects your balance sheet accounts.

To see more details or where the losses or gains are coming from, open your Profit and Loss report or Balance Sheet. Then select the amount displayed on the report for the account you're reviewing to open the Transaction Report for that account.

If the account has open transactions (such as an invoice) and you ran at least one Home currency adjustment, the Transaction Report displays additional rows for journal entries that show the date and exchange rate at which you revalued your Foreign currency. These journal entries display 0.00 (as explained in the previous section).

The total unrealized gain or loss appears in the row for each of your open transactions so you can easily see how all Home currency adjustments affect this transaction.

In addition, the Profit and Loss Details report displays 0.00 journal entries in the Exchange gain loss section to provide you with more details on exchange rates and revaluation dates that do not affect your books.

Additional details about this are discussed here: 

• Frequently Asked Questions about Home Currency Adjustments
• Enter Home Currency Adjustments for Your Foreign Balances

If you haven't made any adjustments, I recommend reaching out to our chat or phone support agents. They can take a closer look at this and determine why there are gains or losses even if you're using the same currencies. Go to this article to get their contact details: QuickBooks Online Support.

Let me know if that answers your question why there are gains or losses. Please don't hesitate to always get back here if you still have more questions for us.