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gandhiapaq
Level 1

How is the exchange gain or loss recognized by QB

We use multiple currency. When vendor invoice us in foreign currency, we use QB rates. I realise that when payment is done QB calculates its own exchange gain or loss. how do i reverse this or cancel it.(where is the transaction?) 

Note : I pass the difference in exchange manually when payment is done.Also change the rate  according to payment conversion (this is done when buying in another currency to pay particular foreign currency) ie. Buy EURO in USD (using USD Bank Account), to pay EURO - these are foreign currency . Home currency is SGD.

Is there any other effective way to post the transaction.

12 Comments
Not applicable

How is the exchange gain or loss recognized by QB

Dear gandhiapaq,

Good day ! i'm here to help :)

The exchange gain or loss in QB is recognised via the exchange rate field in the vendor invoice. For example, when we record the vendor invoice at a rate of 1:1.5 and subsequently, we record the payment at 1:2.0, there will be an exchange gain or loss based on the vendor invoice value X the difference in exchange rate (0.5 difference here).

We can avoid the exchange gain or loss by making sure the exchange rate is the same for the invoice and payment. To do this, we open the payment transactions, and edit the exchange rate to be the same as the vendor invoice exchange rate. The exchange gain or loss will be cancelled/removed.

Thanks

tomaszbanas
Level 2

How is the exchange gain or loss recognized by QB

Yes, we can edit the exchange rate on the invoice and the payment. However, we still end up with inaccurate data, as QB only allows six decimal places in the exchange rate field. Please advise.
dtherrien
Level 1

How is the exchange gain or loss recognized by QB

Is there a way to assign a class to the exchange difference?

FritzF
Moderator

How is the exchange gain or loss recognized by QB

Thanks for joining this conversation, @dtherrien.

 

I'm here to help get this taken care of, but I have some questions about your concern first.

 

To ensure that I'm on the same page, may I know where you want to assign a class? Is it for a specific transaction? Any additional information will be much appreciated. This will help me make sure that I can provide you with the best information.

 

In the meantime, I'm including these articles for additional information:

 

 

I'm looking forward to your response, @dtherrien. Take care always.

qbo2
Level 2

How is the exchange gain or loss recognized by QB

Hello.

 

I also would like to know how to assign a class to the account "Exchange Gain Or Loss"

You asked "Where", well I would like to assign a class every time, but at this moment the most important is at the time of the payment, I mean, when the account appear in a cash movement (I am only using multi-currency in sales)  because we use Cash Accounting Method. But it could be necessary also at the time of the invoice.

Thanks for your help.

Rose-A
Moderator

How is the exchange gain or loss recognized by QB

Hey there, qbo2.

Allow me to provide additional information regarding adding a class to the Exchange Gain Or Loss account in QuickBooks Online.

 

Adding a class to the Exchange Gain Or Loss account is currently unavailable in QuickBooks Online. The Exchange Gain Or Loss is calculated once the payment is applied. You can only assign a class in the invoice and not at the time of payment.

 

These articles are a good reference:

 

For additional help, you can also reach out to our QuickBooks Online Support.  

 

  1. Sign in to your QuickBooks Online Company.
  2. Click (?) Help at the upper right corner.
  3. Select Contact US on the pop-up.
  4. Enter a brief description of your concern then hit Continue.
  5. Click Get a callback.
  6. Enter your contact information.
  7. Select Call me.

Feel free to get back to me if you have additional questions about Exchange Gain Or Loss in QuickBooks Online. Have a good one.

a-smith
Level 2

How is the exchange gain or loss recognized by QB

Has adding a class to the Exchange Gain Or Loss account in QuickBooks Online been added?

ShiellaGraceA
QuickBooks Team

How is the exchange gain or loss recognized by QB

Thanks for joining the thread, @a-smith.

 

I'll share some information about adding a class to the exchange gain or loss account. Exchange gain and loss in QBO are calculated automatically and separately from the source transaction. Thus, adding it isn't possible.

 

To learn more about this feature, see the following links below:

 

If you have other questions or concerns about your exchange gain or loss account, please let me know. I'm more than willing to answer them for you. Have a great rest of the week.

a-smith
Level 2

How is the exchange gain or loss recognized by QB

That was a long post to simply say no. 

 

Are there any plans to change/update this?

ShiellaGraceA
QuickBooks Team

How is the exchange gain or loss recognized by QB

Glad to have you back, @a-smith.

 

Currently, we don't have any update if this feature will be added soon. You can visit out blog site to stay current on the latest product updates. This way, you'll know what's new in QuickBooks Online.

 

Here's the link to our site: The QuickBooks Blog 

 

Feel free to message me anytime if you need help with anything else. I'll be around for you. Take care.

 

O2Nicole
Level 1

How is the exchange gain or loss recognized by QB

 
O2Nicole
Level 1

How is the exchange gain or loss recognized by QB

I used a JE to move the exchange gain/loss from the unspecified class to the class where I wanted it to appear:

 

For a gain:

Debit unspecified (leave class blank)

Credit class where you want the gain to appear

 

For a loss

Debit class where you want the gain to appear

Credit unspecified (leave class blank)

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