Writing off currency exchange differences

I'll help you in handling that transaction, Yo_Be_Low.

You can create a non-inventory item as a placeholder for the currency exchange difference. Then, enter a credit memo for that amount and apply it to the invoice. 

You may start by creating an expanse account for the difference. I'd recommend consulting your account in choosing the detail type to avoid discrepancies in your books. After that, follow these steps to create the item:

1. Select Sales from the sidebar menu.
2. Go to the Products and Services tab.
3. At the upper right, click New and then choose Non-inventory.
4. In the Name field, enter “ Currency Exchange Difference.”
5. From the Income account drop-down, select the expense account you've created.
6. Click Save and Close.

Once done, here's how to enter a credit memo :

1. Click the + New button.
2. Choose Credit memo.
3. Select the customer from the Customer drop-down menu.
4. In the Product/Service section, select the currency exchange difference item.
5. Enter the amount you want to write off.
6. In the Message displayed on statement box, enter “Currency Exchange Difference.”
7. Click Save and Close.

Lastly, apply the credit memo to the invoice:

1. Click the + New button.
2. Under Customers, select Receive payment.
3. Select the customer from the Customer drop-down menu.
4. From the Outstanding Transactions section, select the invoice.
5. From the Credits section, select the credit memo you've created earlier.
6. Select Save and Close.

I'm also adding some articles that you can read to help manage your payables or receivables in a foreign currency:

• Multi-currency FAQ
• About Multicurrency
• Enter home currency adjustments for your foreign balances

If I can be of any additional assistance, please don't hesitate to visit the Community again. We're open here 24/7 and always ready to assist.

Hi Yo_Be_Low,

Hope you’re doing great. I wanted to see how everything is going about your concern last week. Were you able to write off the difference? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!