Brett Wuth: New page: Underneath QuickBooks represents all values in only our home currency (Canadian Dollars). So when an invoice in US Dollars is received on one day and paid on another day, the same US Dolla...

2020-02-23T08:02:08Z

New page: Underneath QuickBooks represents all values in only our home currency (Canadian Dollars). So when an invoice in US Dollars is received on one day and paid on another day, the same US Dolla...

New page

Underneath QuickBooks represents all values in only our home currency (Canadian Dollars).
So when an invoice in US Dollars is received on one day and paid on another day,
the same US Dollar amount can have different Canadian Dollar values,
depending on the exchange rates for the given days.
An exchange gain or loss is created to reflect this, and is shown in a special account named
"Exchange Gain or Loss".

Other accounting programs can represent the current value of accounts in multiple currency,
e.g. We have this amount in the bank in Canadian Dollars and owe this amount in US Dollars which at today's exchange rate is equivalent to so much Canadian Dollars.
These accounting programs do not have to work around with a special "Exchange Gain or Loss" account.

See:
* https://quickbooks.intuit.com/learn-support/en-us/banking/exchange-rate-on-balance-sheet/00/199403
* https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-is-the-exchange-gain-or-loss-recognized-by-qb/00/184667

Book Keeping Task/QuickBooks/Exchange Gain or Loss - Revision history

Brett Wuth: New page: Underneath QuickBooks represents all values in only our home currency (Canadian Dollars). So when an invoice in US Dollars is received on one day and paid on another day, the same US Dolla...