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Anonymous
Not applicable

exchange gain/loss going into closed accounting period?

In QB online sales/customer module, after applying cash payment to an existing invoice with foreign currency, an exchange gain/loss will be recorded into the period when the invoice was booked. This caused exchange gain/loss going into the previous accounting period and changed the net income/loss of that accounting period. Normally it was closed and fixed, and cannot be changed from the accounting perspective.

 

How to avoid or resolve such issues? Can we let the exchange gain/loss going into the current accounting period?

7 Comments 7
JamesDuanT
Moderator

exchange gain/loss going into closed accounting period?

Hello Jackma,

 

When you create invoices or other transactions, QuickBooks Online always uses the exchange rate on that moment.

 

Once you pay the invoice, you might want to update the exchange rate to the current one. This'll reflect under the total converted amount instead of the Amount received field.

Note that foreign currencies are automatically updated every four hours in QuickBooks. These updates come from Wall Street On Demand.

 

You can also browse more about exchange rates in QuickBooks Online.

 

Please don't hesitate to let us know if you have additional questions.

AY0909
Level 1

exchange gain/loss going into closed accounting period?

Hi,

I have the same problem.  how do I fix this? My opening retained earning is adjusted by this automatic forex entries that was posted to prior periods.  

JenoP
Moderator

exchange gain/loss going into closed accounting period?

Hi there, AY0909.

 

I can see a separate thread with the same question. 

 

Let me link you to it so you can follow the steps provided by my colleagues: https://quickbooks.intuit.com/learn-support/en-us/other-questions/re-exchange-gains-or-loss-going-in....

 

Visit us again if you have other questions. 

Tanna2020
Level 1

exchange gain/loss going into closed accounting period?

Hi In need some help.

 

Quickbooks online Exchange Gain/Loss is going as sales.

Which is wrong

How do i change that

 

Sachin

Rose-A
Moderator

exchange gain/loss going into closed accounting period?

Hi, Tanna2020.

 

I'm here to help and ensure that your questions are addressed accordingly.

 

To give you the right amount of information and solution to fix your Exchange Gain/Loss data, where exactly in QuickBooks did you see those details?

 

Also, it would be best if you can send me a screenshot as well. Any additional information would be highly appreciated.

 

I hope you can respond to me on this thread so we can work with your concern together. Please know I'm ready to assist further. Have a good one.

XIAOLING
Level 1

exchange gain/loss going into closed accounting period?

Hi i have the same issue . my exchange gain and loss will be auto adjusted for previous period . eg deposit payment received in FY 2021, but it is for FY2022 Invoice . after i apply the payment received in FY 2021 to invoice in FY2022, My exchange gain and loss for FY2021 will chage automatically. how to solved this issue? same thing happen to the advance supplier payment for next financial year.  

RoseJillB
QuickBooks Team

exchange gain/loss going into closed accounting period?

Thank you for joining this thread, @XIAOLING.

 

Let me ensure we can match the deposit from FY 2021 to the invoice in FY 2022. To start, we can go to the invoice transaction and manually alter the exchange rate to the FY 2021 rate. Here’s how:

 

  1. Go to the Sales menu and navigate to the All sales tab.
  2. Look for the transaction you’re referring to.
  3. Then, tap this and click Edit invoice.
  4. From there, click the Receive payment button located at the bottom of the amount.
  5. After that, enter the exchange rate when you receive the deposit on F.Y 2021.
  6. When changing the rate a pop-up message will appear. Please choose Use for this transaction only, so that the following transaction will not be affected. Then, press OK.
  7. Lastly, click Save and close.

 

You can now match the deposit to the transaction, @XIAOLING. Afterward, you can refer to this article to learn about reconciling an account in QuickBooks Online. 

 

Feel free to drop by if you have more concerns about entering transactions in QuickBooks. I’m just a few clicks away from you. Have a good one!