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Level 2

Fictitious exchange gain when using QB Online

I sometimes have students who overpay their account so that they have a credit for the next semester.  Whenever they pay more than their outstanding invoice balance, QB Online is creating a fictitious exchange gain for the amount of the credit.

 

Example:  Student owed 12,600, student paid 13,000.  QB Online shows the entry as DR Cash 13,000, CR Accounts receivable 12,600, CR Exchange gain 400.  The student's account correctly shows a credit balance of 400, but if I run a financial report, I have this fictitious exchange gain.  It is NOT an exchange gain, it is a credit balance in A/R.

 

Anyone know why it does this or how to stop QB from doing this?  It is very annoying and it is incorrect!

 

Thanks.

4 Comments
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Community Champion

Fictitious exchange gain when using QB Online

Long shot, but are you set up for multiple currency?  And by any chance is the wrong currency assigned to the Student?  Maybe that's why QBs is calculating an exchange gain.

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Level 15

Fictitious exchange gain when using QB Online

By accepting this as Negative AR (overpayment) you just created Uncategorized Income.

 

Per your own accounting requirements, this is an Other Charge linked either to Liability (if you are allowed to carry liability) or to Income. Use that on an Invoice when they overpay, so that you can apply the Rest of the funds to something.

 

Later, you use that same Prepay/Overpay Product/Service Charge on a Credit Memo for the same date you have an invoice and need to show these funds are Applied to reduce the total owed on this new invoice.

Highlighted
Level 2

Fictitious exchange gain when using QB Online

Yes, we are using multi-currency.  Sorry, I should have said that in my original post.

All students are assigned the same currency, but this issue happens whether the students pay in the foreign currency or the home currency.

Highlighted
Level 2

Fictitious exchange gain when using QB Online

Thank you for this suggestion.  Unfortunately, it is a bit too complicated for the accounting staff who look after the day-to-day activity in Haiti, but thank you.

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