by Lin
(Alberta, Canada)
QBO Multi-Currency Transactions
I am really at lost regarding the booking my foreign exchange transactions & conversions, and need your help! Here is my situation:
Our books are in CAD (reporting currency), and we have some US clients that we occasionally invoice and receive payments from. We have bank accounts in both CAD & USD for our activities.
We invoice our US clients in USD and receive payments in USD, then we deposit them in our USD bank account until we are ready to convert them into CAD with the bank.
In Quickbooks (QB) we set up those US clients in USD currency as well. I have two questions:
1. When we invoice the US clients (in USD) and then received payments later (in USD), quickbooks calculates a Foreign Exchange Gain/ Loss on the amount for the different FX rates when invoice was created and payment received. Is that Correct?
2. When we convert the USD into CAD with our bank (sell USD cash and buy CAD cash with our bank), what entries should I enter for this transaction? Is there FX gain/loss again?
Desperately need some help on this. Thanks.
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