How Do I Record a Gain or Loss On Funds I Transferred To a Foreign Bank Account?

Recording a gain or loss on funds transferred to a foreign bank account is accomplished by the Company->Manage Currency->Home Currency Adjustment menu selection.

First, enter the Date for the currency adjustment and choose the Currency whose value you want to update. Click the Calculate Adjustment button to locate those balances potentially impacted by the changed exchange rate. Enter the updated exchange rate.

In this example, we started with an exchange rate of 1 British pound (GBP) = 1.705 US Dollars (USD). We’ll record a new exchange rate of 1 GBP = 1.905 USD. Click the Calculate Adjustment button a second time to calculate the exchange-related gain or loss based on the updated exchange rate. Select the balances to adjust based on the new exchange rate by placing a check mark to the left of each balance. If you need to better describe the adjustment, enter a Memo. Click the Save & Close or Save & New button to record the adjustment.

QuickBooks will post a General Journal entry to the Exchange Gain or Loss account in the amount of the adjustment.

See our related article for more information on transferring funds to a foreign bank account.

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  1. This Article is so useful… wow it basically made my day .. coz I was furious when I found out the difference in my Foreign Currency bank balance in my home currency records. I was finding a solution for this and read many threads and articles on how to rectify this issue. At last I found this article and I did as it explained above .. Its worked perfectly .. Finally my Foreign Currency Bank balance in Home currency matches to the Bank statement balance.

    Thank you for sharing such valuable info about Qucikbook features.. It helps alot !!
    Have a good day !