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Experienced Member

How to get accurate financial statements and adjusted trial balances with multi-currencies?

Hello, 

I'm having some issues with the multi currency feature at the moment of using the report "Adjusted Trial Balance". The company where I work has a branch in Mexico and uses the MXP currency, so after the end of each month, there's a "Exchange in Gain and Loss" where our USD bank account is affected. 

Example, at the beginning of the period I start with $1,000 USD in bank account "A", and the exchange rate in that day is $18.5 MXP, so my "Adjusted Trial Balance" reads: $18,500.00 MXP. But let's say that at the end of the month, I did not spend anything and I'm still with $1,000 USD but now the currency has changed to $19.0 MXP. So, how can I change the value in my "Adjusted Trial Balance" to read $19,000.00 MXP and having the same $1,000 USD?. 

I tried doing a general journal in exchange in gain or loss to match the MXP amount in  my statements, but my dollars in the USD bank account in QBs either increase or decrease, when physically my dollars are still the same. Hence, I cannot reconcile correctly either.

Does someone knows how to properly record this without affecting my dollars?

Thank you!

Solved
Best answer 3 weeks ago

Accepted Solutions
Not applicable

fvallerw, Good day ! I am here to help. We can have the "...

fvallerw,

Good day ! I am here to help.

We can have the "Adjusted trial balance" to read $19,000 MXP by using the function "Home Currency Adjustment". The function is used to revalue foreign balance in your books into the latest exchange rate.

The steps to perform "Home Currency Adjustment" with more details is at the link below:

https://community.intuit.com/articles/1207426-understanding-home-currency-adjustments

Thanks

7 Comments
Established Community Backer ***

what is your home currency?

what is your home currency?
Experienced Member

Hi Malcolm, the home currency is MXP. The bank account wi...

Hi Malcolm, the home currency is MXP. The bank account with USD currency is the one affected
Established Community Backer ***

If you invested 18,500.00 MXP in a USD bank account, it w...

If you invested 18,500.00 MXP in a USD bank account, it will show on the balance sheet as a 18,500.00 MXP asset.  Changes in the exchange rate don't change that fact. The change is only realized as a gain/loss when you buy or sell some or all of the USD.  If you want to show changes before then, then the JE is in MXP,  with a USD value of zero so it does not change the USD value. QBO USA has a tool for this
Experienced Member

Malcolm, this answer from the user IntuitCheeChau worked...

Malcolm, this answer from the user IntuitCheeChau worked accurately for what I was looking for.

"We can have the "Adjusted trial balance" to read $19,000 MXP by using the function "Home Currency Adjustment". The function is used to revalue foreign balance in your books into the latest exchange rate.

The steps to perform "Home Currency Adjustment" with more details is at the link below:

<a rel="nofollow" target="_blank" href="https://community.intuit.com/articles/1207426-understanding-home-currency-adjustments"">https://comm...>

Hope this helps to you in the future as well :)
Not applicable

fvallerw, Good day ! I am here to help. We can have the "...

fvallerw,

Good day ! I am here to help.

We can have the "Adjusted trial balance" to read $19,000 MXP by using the function "Home Currency Adjustment". The function is used to revalue foreign balance in your books into the latest exchange rate.

The steps to perform "Home Currency Adjustment" with more details is at the link below:

https://community.intuit.com/articles/1207426-understanding-home-currency-adjustments

Thanks

Experienced Member

Hi IntuitCheeChau, this worked just perfectly! I can fina...

Hi IntuitCheeChau, this worked just perfectly! I can finally work my reports in the home currency without affecting the dollars in my banks.

Greatly appreciated!!
Not applicable

Hi fvallerw, I am so glad to hear that ! thank you so muc...

Hi fvallerw, I am so glad to hear that ! thank you so much for your time and I hope you enjoy using QuickBooks Online !