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Home Currency Adjustments in Quick Books Pro 2006

Expert: Meg Rosgen

Chris asked:

  1. We use QB Pro 2006 with multi-c and have suppliers and customers in US$ with home currency being Canadian$.
  2. On Dec 31st the US$ A/P Register showed NIL balance payable in US$. The A/P Aging summary (in CDN$) showed a NIL balance.
  3. On the same day the Balance Sheet (in CDN$) showed a CDN$ - 55.65 (negative) balance in the US$ A/P line item.
  4. We passed a Journal entry with Home currency adjustment checked off for $55.65 crediting US$ AP and debiting Exchange Gain/Loss. The Balance sheet now also now show NIL balance in US$ AP, which is what we wanted.
  5. HOWEVER, the A/P Summary statement is now showing CDN$55.65 owed to the vendor, which is obviously not correct.

Question: If the US$ AP register is showing NIL balance, and if the Balance Sheet is showing NIL balance, why is only the AP Summary showing a $55.65 balance???

We have tried for a whole day without success. QB Support said they had no idea why it occurred or what to do. Can someone help please? Will be greatly appreciated. Thanks

Meg Rosgen answered:

To answer your question we contacted Meg Rosgen, QuickBooks Product Management Lead, Intuit Global Business Division.

Meg noted that it's quite difficult to determine the issue without seeing the file/data or the talking with the user directly. Here is what she advises:

It's possible the user has bills and bill credits with different exchange rates used. With QuickBooks multicurrency, if you are paying a bill and you have used a bill credit as a partial payment, then all three – bill/bill credit/payment – have to use the same exchange rate.

If you fix this problem the home currency adjustment is most likely not needed.

Also, it is suggested to run a detail vendor balance detail report with the foreign amount column displayed. Narrow down the date range when the problem occurred and then do a history of the transactions to find any linking of transactions with different exchange rates.

(The team notes this is best done with the customer on the phone as it can become quite intensive. The Quickbooks team have often reviewed files for customers to find the value as it will save time in the long run.)

About the author

Meg Rosgen is the QuickBooks Product Management Lead for Intuit Global Business Division.

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