Retained Earning - Different Value of TB and BL

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

Hi Christie,

Thanks for your quick response,

As per your instructions, I cross-checked TB and BL accounts and found that there is a system-generated FX unrealized gain and loss account,

I am not been able to book a reversal entry for this account,

Any solution? (screenshot attached)

Thanks

I appreciate you for performing the steps shared by my peer above to help fix your reporting concern, @ACCOUNTS_EVO. Also, the screenshot you've added helps me determine the root cause of this issue, and I've got some details to resolve this. 

The Unrealised Gain or Loss account on your report is an indication that you haven't made the revaluation of your foreign currency. That's why the system generated this account. 

To help fix this, let's first revalue your foreign currencies. I'd suggest consulting with your accountant before entering these adjustments. He can determine the specific accounts you want to apply the revaluation to. This way, you'll have the most updated unrealized gain or loss amount on the report so your books will be accurate. I'll guide you how. 

1. Go to the Settings (Gear) icon at the upper right. 
2. Select Currencies under Lists. 
3. Locate the currency you want to adjust.
4. From the Edit currency exchange drop-down list in the Action column, click Revalue currency.
5. Set a Revalue date. 
6. Select whether you'd like the revaluation will be based on the market exchange rate or a rate you specify.
7. Choose the account you want to apply the revaluation to.
8. Click Revalue and save. 

The screenshot below shows you the last six steps. 

Once done, QuickBooks will automatically create a journal entry and adjust the Unrealised Gain or Loss amount on your report. For more details, go through this article: Frequently Asked Questions about Home Currency Adjustments. 

If you still want to book a reversal entry for the Unrealised Gain or Loss account, I recommend consulting your accountant again. He can verify if this is the appropriate method to correct the difference in your TB and BL reports. Once confirmed, proceed with the steps below. 

1. Go to Accounting from the left menu. 
2. Select Chart of Accounts. 
3. Locate the Accounts Receivable or Accounts Payable account. 
4. From the Action column, select View  register.
5. Select the journal entry for Unrealised Gain or Loss and select Edit.
6. In the transaction window, choose Reverse. 
7. Click Save and close.

For detailed instructions, check out this article: Reverse or Delete A Journal Entry. 

As always, you can visit this website: Year-end Checklist. This link provides you a series of tasks to complete your year-end process, such as closing your books to lock past transactions. 

Please know that I'm here anytime you have other concerns. Have a great day, @ACCOUNTS_EVO.

Hi Raymond,

Thanks for the explanation on the issue,

I do FX revaluation on a monthly basis and well aware of the scenario,

Anyhow, the last solution: locating the unrealized gain and loss account from Chart of accounts, sorry to say but it is not appearing in the chart of accounts

Why I am not been able to see this account?

Do I need to check from the settings?

Thanks 

I appreciate you for performing the solution provided by my colleague above, ACCOUNTS_EVO.

Let me guide you on how you can locate the unrealized gain and loss account from Chart of Accounts.

The unrealized gain and loss account is the effect of a Home currency adjustment on your Accounts Payable or Accounts Receivable. With that being said, you can locate them by viewing the Accounts Payable or Accounts Receivable's register.

1. Go to the Accounting menu. 
2. Select Chart of Accounts. 
3. Choose either Accounts Payable or Accounts Receivable.
4. From the Action column, select View register.

From there, manually locate the transaction that has the unrealized gain and loss account. 

You can also pull up reports like the Transaction Detail or customize the Customer Balance Detail and Vendor Balance Detail to view unrealized gains or losses.

To learn more about Home currency adjustments when using the Multi-currency feature in QuickBooks Online, you can refer to this article: Home Currency Adjustments. It also contains sections of frequently asked questions and can guide you where you can see your Home currency adjustments history.

Please let me know if you have other concerns. I'm just around to help.

I am having the same issue. I revalue the currency every month. 

The problem is that I can have "Unrealized Gain/Loss" account on my P&L and on my Balance Sheet but it won't appear on the Trial Balance.

How can I get the account "Unrealized Gain/Loss" on the Trial Balance? 

Good to have you join this thread, @AccountingInCanada.

I can share with some insights about the Unrealized Gain/Loss.

The Unrealized Gain/Loss account is the result of home currency adjustments due to changes in exchange rates.

These are realized only after the transactions have been completed when money has been collected or paid. Thus, it'll not reflect on your general ledger or trial balance report. 

You can also check out these articles for more details about this: 
 

• Frequently Asked Questions about Home Currency Adjustments
• Enter home currency adjustments for your foreign balances

Once everything is in place, you might want to utilize this link for reference in seamlessly managing your accounts: Reconcile an account in QuickBooks Online.

If there's anything else you need assistance with about your reports and currencies, please feel free to tag me in your response. I'm always here to assist you. Have a good one!