Why do some of my home currency adjustment journal entries have 0.00 amount?
Where can I see my home currency adjustment history?
What is the difference between unrealized and realized foreign exchange gains or losses?
Where can I see my unrealized gains or losses?
Where can I get more details on my unrealized gains or losses?
Why am I seeing a line for “Previous Unrealized Gain or Loss” on my Transaction Report?
Why do the Balance Sheet and Accounts Payable Aging not agree?
 

Why do some of my home currency adjustment journal entries have a 0.00 amount?

  • When you create a home currency adjustment, QuickBooks creates journal entries with zero gain or loss for accounts receivable and accounts payable.
  • The journal entries keep track of the date you revalued a currency, which currency you revalued, and at what exchange rate
  • Reports use the exchange rate from the adjustment to calculate unrealized gains and losses.
  • You can no longer change the journal date, debit and credit amounts, or exchange rate on the journal entry. This is to ensure that the unrealized exchange gain/loss amounts can be accurately calculated on the reports.
  • You can edit the journal entry number and memo field, or add attachments for your record keeping
  • If you need to change the date or exchange rate, delete the journal entry and run the currency revaluation again
Note: If you see home currency adjustment journal entries with non-zero dollar amounts, that’s because you’ve run home currency adjustments on bank or credit accounts and have realized gains and losses.

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Where can I see my home currency adjustment history?

You can easily keep track of home currency adjustments:
  1. On your revalue screen, click the Revalue history tab
  2. You’ll see a list of past currency revaluations, the dates and exchange rates, and links to the journal entry for each of them
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What’s the difference between unrealized and realized foreign exchange gains or losses?

Unrealized foreign exchange gain or loss refer to profits or losses that have occurred on paper due to changes in exchange rates. These gains or losses are only realized after the transactions have been completed (e.g. money has been collected or paid).

As a result, we show the effect of a home currency adjustment on accounts payable or accounts receivable as an unrealized gain or loss. We show the effect on other account types, like bank accounts, as a realized exchange gain or loss.

Use the transaction detail report for more detailed information regarding your gain or loss.

Note: Unrealized gains or losses will not be reflected in the general ledger or trial balance.

Where can I see my unrealized gains or losses?

The best place to see your unrealized gains or losses is on any of the following reports:
Profit and loss
Balance sheet
Customer balance
Vendor balance

Note: We recommend that you revalue your foreign currencies just before you run your reports, so that you see the most updated and accurate unrealized gain or loss amounts
  • You can choose whether or not unrealized gain or loss shows up on your Profit and loss and Balance sheet reports
    1. You’ll see a checkbox at the top, close to the dates, for Show unrealized gain/ loss. The option is also available in your report customization settings.
    2. If you turn on the check box, an additional row or column will appear and show the unrealized foreign exchange gain/loss amount.
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  • On your Customer or Vendor Balance reports:
    1. Select Report date as your aging method
    2. Click on the gear icon to open the settings for your report, then click Show more columns 
    3. Turn on the Unrealized gain or loss column.
    4. You can also turn on additional columns, such as Revalued open balance, or Revalued exchange rate, for more details.
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Where can I get more details on my unrealized gains or losses?

From your Profit and Loss or Balance Sheet report:
  • Click on the account you are interested in to access the Transaction Report for that account.
Note: on your Profit and Loss details report, the Exchange gain loss section has 0.00 journal entries to provide you with more details on the exchange rate and revalue date that do not affect your books.

On the Transaction Report if the account has:
  • open transactions (e.g. invoice) and
  • you ran at least one home currency adjustment - 
you will see additional rows for journal entries that show the date and exchange rate at which you revalued your foreign currency.

These journal entries will show 0.00 for the reasons stated above.

The total unrealized gain or loss will show up in the row for each of your open transactions so you can easily see how all home currency adjustments affect this transaction

Why am I seeing a line for “Previous Unrealized Gain or Loss” on my Transaction Report?

On Transaction Reports for accounts with open foreign transactions (e.g. accounts receivable or accounts payable), there is a row titled “Previous Unrealized Gain or Loss”.  The row reverses the unrealized gain or loss from the previous period, so that we can show the accurate unrealized gain or loss for this reporting period.
Note: Realized (as opposed to unrealized) gains or losses don’t need to be reversed across periods, so “Previous Gain or Loss” will not show up in Transaction Reports for e.g. foreign bank accounts 


Why do the Balance Sheet and Accounts Payable Aging not agree?

If you have a Balance Sheet and A/P Aging report that do not agree, it might be the result of future payments against current bills. The Aging report and other A/P detail reports do not pull bills with a status of "paid." The Balance Sheet is correct, as are the detail reports, because the bill is no longer open.

If you need a Vendor/Supplier Balance report that agrees with the Balance Sheet, customize the Vendor/Supplier Balance report to run as of the Balance Sheet Date and customize it to change its Aging method to Report Date.

An alternative is to customize the Aging report to the As of Report Date. The report will balance to the Balance Sheet as long as the Balance Sheet  follows the accrual reporting method for the same date range.



Further reading
Understanding Home Currency Adjustments
Balance Sheet/Trial Balance and A/R Aging reports don't agree