Previous year currency gain losses are changing in P&L

We have discovered that our previous year P&L is changing due to currency gain/loss when we apply vendor credits or customer credits against bills input into current year. 

We receive advance deposits from clients for goods prior to delivery and also make advance payments to vendors for goods to be manufactured for future delivery. These advance payments are received or sent in EUR (into EUR denominated bank accounts, and remain in that currency). 

When transactions cross over from one calendar year to another we have found that the currency gain/losses is changing from previous year (changing P&L and balance sheet) when we finally accept delivery of the goods and post a bill and link it to the credit residing in AP or AR in the vendor or customer account. 

If, say, we go back today and run a P&L and Balance sheet for the year end of 2017 it is different from the reports we sent to accountants to prepare taxes. 

At the year end we are performing home currency adjustment as we should when all transactions are in for the year (in this case 2017). 

If we go back and open home currency adjustment page - we can see that the differences in currency gain/loss are due to those entries where we've used a credit on AP or AR in the next year. And if we do the home currency adjustment again (using the same exchange rate that was used at year end) this corrects the problem and our P&L comes back to it's original condition at year end. 

This is quite tedious and time consuming - worrying that previous year end financials are not fixed and are a moving number. Just does not seem correct to us. 

Answer

Thanks for dropping by the Community, marsh933.

As I've checked, we haven't received any reports similar to this issue. To better isolate this, let's run the Verify and Rebuild Utility. This will help you resolve minor data issues with your company file.

Before you begin, please note:

  • Run the Rebuild and Verify Utilities on the same computer  where the actual company file is stored.
  • The Rebuild Utility will create a backup of your file. You can save the backup anywhere but please ensure that you take note of the location of the file.

Now, to run the rebuild utility:

  1. From the File menu, click on Utilities.
  2. Select Rebuild Data.

To run the verify utility:

  1. From the File menu, click on Utilities.
  2. Select Verify Data.

For more information about the process, you can refer to this article: https://community.intuit.com/articles/1501314.

We can start with these steps. Please let me know if you're seeing the same results so we can try other steps to get this working for you. I'll be here to help.

Was this answer helpful? Yes No
Original
IntuitFritz , Community Support Specialist
Employee SuperUser

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.