Dealing with Cash On Hand in Multiple Currencies

jwnickel · ‎December 21, 2020

Greetings,

I wanted to verify how to set this up before I attempt it. We deal with 2 currencies (USD and KRW). Our home currency is USD. We often have cash on hand in both currencies. If the cash from KRW is exchanged and deposited into the US bank I don't think there is any problem as we can just enter the exchange rate. If the funds are put bank into the foreign bank it was withdrawn from, then I'm not sure. There should be no exchange involved as it was never converted, but QBO treats it that way based on home currency. I can set the exchange rate but it seems to result in a loss or gain as it rounds the exchange rate. Is there a better way, or how de we handle the differences when funds are put back?

For example: I withdrawal 200,000 won to make change for tickets purchased at the door for an event. I then return the original 200,000 won plus 130,000 in sales for a total deposit of 330,000. This is not based on any exchange rate as we received the funds in KRW.

MaryLurleenM · ‎December 21, 2020

Hello there, jwnickel,

When you record a transaction that's not your home currency, it will always be entered with the exchange rate.

Furthermore, it's normal to have exchange rate gains and losses since the rates kept on changing.

You can refer to your accountant on how to record the difference in the rates.

Here are some articles for future reference:

I'll be here if you have other questions.