Adjust Foreign Currency Vendor Balances

Hi there, @ KM402. 

Allow me to share some information about in changing your home currency for your foreign vendors. 

Once you select the home currency during the initial setup of your QBDT software, the option to change it is currently unavailable. As a workaround, you can consider utilizing the Multicurrency feature to set US dollars (USD) as your home currency. 

Before we start, please know that you can no longer deactivate the feature once it's turned on. In this case, I'd suggest creating a backup copy of your company file before activating Multicurrency.

I'm adding this article to learn how to use the multicurrency feature in QuickBooks Desktop: Set up and use Multicurrency.

Feel free to add a comment below if you have other concerns or questions. I’ll get back to make sure you’re taken care of. Wishing your business continued success.

I'm sorry for not being clear enough. I have multi-currency set up in QuickBooks, and I have multiple foreign currency vendors & customers. 
My issue occurs when a foreign-currency vendor is paid in full, but because of exchange rates, it'll show up on 'Vendor Balance Summary Reports', with a home-currency balance. 

I am aware there is a way to adjust home-currency balances for foreign-currency bank accounts - is there a way to adjust home-currency balances for foreign-currency vendors?

Thanks for getting back to us, KM402. 

Allow me to chime in and share information on how multi-currency works in QuickBooks Desktop.

Reports in QuickBooks Desktop will always reflect the home currency regardless of the currency used in the transactions. The Home currency will be calculated by default.

To enter a home currency adjustment, here's how:

1. Go to the Company menu.

2. Click Manage Currency, and then click Home Currency Adjustment.

3. Select the currency you'd like to enter the adjustment for. You can make adjustments for only one currency at a time.

4. If necessary, update the currency's exchange rate. QuickBooks uses this rate to recalculate your home currency balances. By default, QuickBooks uses the latest exchange rate listed in the currency list.

5. Click the Calculate Adjustment button. QuickBooks displays the balances you have for accounts in the selected currency.

6. Click the checkmark column to select the accounts to make adjustments for and then save the transaction.

Additionally, this guide provides an overview of how to handle different currencies in QuickBooks Desktop: Set up and use Multicurrency.

Let me know how this goes and leave a reply below if you need further assistance managing currency. I'm always here to help. Have a good one.

I tried using the solution below - Home Currency Adjustment

But I have one issue, it doesn't allow me to adjust vendors with zero balance in foreign-currency.

That is I have several foreign-currency vendors that are paid up, and on 'Vendor Balance Summary Report' they show up with a balance (because the report is in Home-Currency). These vendors don't show up in the window for Home Currency Adjustment.

Please advise

Thanks for coming back to the thread, @KM402.

I want to help you out with this multicurrency adjustment concern, and share further insights about it. It's true that paid bills will no longer appear in the adjustment page. This is because the system doesn't find any discrepancy, as the correct exchange rates were used when creating the transaction.

If you want to adjust, make sure the bill is still open and not yet paid in QuickBooks. Please see the following link for more information about setting up multicurrency in QuickBooks: Set up and use Multicurrency.

Come back here if you have other questions or concerns with the multicurrency feature. I'll be more than happy to share some insights with you.

So what would be your solution with zero balance vendors and zero balance banks - so they shouldn't show up in reports?

Let me help you run the report you need to not show the zero balance amount for vendors and banks in the Vendor report, @KM402.

We can customize the Vendor Balance Details report and manually enter an amount( not set to zero) in the To and From field. Let me show you how: 

1. Click Reports at the top menu bar.
2. Choose Vendor & Payables. 
3. Tap Customize Report.
4. Hit Filters.
5. Enter Amount in the Search field.
6. Enter the amount of the transactions in the To and From field.
7. Press OK.

Here's an article you can refer to for more details about customizing reports in QuickBooks Desktop. I've got a link here that contains articles on running balance sheets and profit and loss reports to manage your business: Financial reports.

Keep in touch if you need any more assistance with this, or if there's something else I can do for you. I've got your back. You have a good one.

I'm sorry but this won't help. As long as QB calculates a zero balance into a positive or negative balance in home currency, it show up on reports. There is no way to filter that. 

Hi there, @KM402.

Allow me to chime and help determine why you have home currency balances for vendors you paid up in full. It's necessary to ensure everything is accounted for properly.

Balances that show up on the Vendor Balance Summary report are unpaid amounts. Changes in exchange rates won't result to a home currency balance on the report as they're reported as Exchange Gain or Loss. I recommend running the Unpaid Bills Detail report to verify what you owe each vendor. Ensure to select Today from the Dates drop-down to view the updated list.

Here's how:

1. Go to the Reports menu.
2. Scroll down to Vendors & Payables and choose Unpaid Bills Detail.
   
3. From the Dates drop-down, select Today.

Then, you'll want to compare the balances with what's in your Vendor Balance Summary report. 

Additionally, there are several reports available you can review info about your vendors and payables. Check out this link to learn more: Understand reports.

Please keep us updated on how it goes and if you need further assistance tracking your payables. I want to ensure everything is straightened out.

Quote: Balances that show up on the Vendor Balance Summary report are unpaid amounts. Changes in exchange rates won't result to a home currency balance on the report as they're reported as Exchange Gain or Loss.

I don't see that happening.

Please see snapshots below & see my issue:

Capture 1 -  This is from my Vendor Balance Summary Report

These are from my Vendor Center

See that the vendors' balance in the vendor center are zero, that is they are paid in full, yet on the Vendor Balance Summary they show up with a balance. I only have this with foreign currency vendors, and the reason this happens is presumably, because QB calculates the Balance on the Report separately and not from the vendor center. 

Thanks so much!!
This finally worked to make by Reports perfect!

Awesome! @KM402.

I'm happy to know that the steps shared by my colleague above help you get the report that you need.

For more tips and other resources, you can always visit our website for future reference: QuickBooks Desktop (QBDT) self-help articles.

You're always welcome to post again here in the Community if you have any questions or concerns. We will be here ready to assist. Take care and have a great day!

Actually I ran into a problem!
After doing a Home-Currency General Journal to balance out the Home-Currency value for the Foreign-Currency zero balance vendor this is what happened:
The Foreign Currency balance for the vendor is now no-more zero, rather overpaid.
So on Home-Currency Reports it shows as paid up, because I balanced it out 
But in the Vendor Center it is now Overpaid
I'm lost - what can I do to resolve this?
I don't want my paid up vendors to show up on home-currency reports, but neither am I interested for them to show up as overpaid or underpaid in the vendor center!

Hi there, @KM402.

Thank you for getting back to us and sharing the problem you encounter after making a Home-Currency General Journal to balance your foreign balances. But don't worry, I've come to help resolve this issue so your vendors will show as overpaid or underpaid in the vendor center.

One of the reasons why your vendor's Foreign Currency balance showed as overpaid was because of the accounts used when you created the Home-Currency General Journal. In this case, I suggest reviewing the information in the journal entry. If you aren't sure about the accounts selected, I recommend seeking help from your accountant to make sure you're choosing the right accounts. If you don't have an accountant, you can find one through this website: Find an accountant.

Do you need more information about multicurrency? This article will provide you the detailed information about using it in QuickBooks Desktop: Set up and use Multicurrency.

The Community forum is always open to help you again if you have follow-up questions or other inquiries. Wishing you continued success, @KM402.

What should be the right account?
I used 'Exchange Gain or Loss' and 'Accounts Payable'
Because I wanted to transfer the extra Home-Currency Balance into the 'Exchange Gain or Loss' account
What happened, is it did remove the extra home-currency value from the account, but effected the foreign-currency balance.

that is a huge issue with the QB. as far as I'm concern, there is only one way of solving this problem. All you can do is to make sure your bill date and payment dates exchange rates are the same, I KNOW THIS IS NOT THE CORRECT WAY TO APPROACH, but "ONLY WAY WITH QB".

I think Quickbooks need to look into revaluing zero valued foreign balances.  These exchange differences are feeding through to the AR balance in TB and BS and are completely incorrect.  We have a very high volume of foreign customers and vendors and I need some way to deal with this.  Double checking the exchange rate on the invoice and matching it to the payment is time-consuming.  Maybe we go back to a fixed exchange rate for the whole year, but that seems to be really bad practice.

I have dealt with this with this in the past by using two foreign currency journals - can be used in AP or AR and done in whichever direction necessary to clear the balance.  It means the offset in foreign currency is also zero so you don't end up with a foreign balance remaining either.  Huge pain though to have to do this   

1.

Dr. AR 1 EURO (whatever currency)

Cr AR 1 EURO  using exchange rate 1:1

2.

Cr AR 1 EURO

Dr AR 1 EURO using whatever exchange rate is necessary to bring the home currency balance to zero

Hi KM402! Did you ever get a satisfactory solution to this issue? I am having the same problem. 

Thank you for this!  I have been trying to resolve a bank "balance" in a foreign currency account that has been emptied and closed...in this case, a Paypal EUR account. The register showed a zero balance...and the balance sheet showed, magically, a balance of 999.44...

I wasn't able to use A/R (I got error messages)...but here's what I did instead, and I think it worked!

JE #1...currency set to EUR, exchange rate set to 1 EUR = 1 USD

debit Undeposited Funds 999.44

credit Paypal EUR 999.44

JE #2...currency set to EUR, exchange rate set to 1 EUR = 0.000001 USD

debit Paypal EUR 999.44

credit Undeposited Funds 999.44

Now I have a zero balance on the balance sheet AND in the register...