Level 1

Reports and accounting

When it comes to Canadian to US, it can be tricky and can be tricky for the account reconciliation,  so I enter it in by journal entry and not as a transfer as follows:

I chose a USD as the currency with an exchange rate of 1.000, which in reality does no exchange because I record it manually in the entry.


I credit the CAD account with the amount of Canadian transferred.  I then debit the USD account with the actual USD amount deposited and debit the exchange rate account with the exchange charged:


example: I transfered $300 CAD to a USD account, which on that day gave me $221.77 USD and the exchange charged was $78.23, so I enter as a journal entry as follows:


US currency as chose of currency

CAD ACCOUNT credit 300.00

USD ACCOUNT debit $221.77

US exchange Rater Variations debit $78.23

for the Source, I enter Cad to USD and the date


It gives me a warning message about using USD in the CAD account but I just click okay and it processes the journal entry.  Since the rate is 1 to 1, it doesn't affect the CAD account other than removing the amount transferred and the reconciliation works.