Consolidating journal entries
So let’s generate the Unrealized Gains & Losses Report by first entering the exchange rates for those currencies for which there are outstanding transactions.
We’ll see that our customer receivable has been adjusted up by 0 because of the change to the exchange rate between the date we billed the customer and the date we entered the balance sheet.
There’s a link to a multicurrency overview in the Quick Books help file.
There’s also a link to the Multicurrency Resource Center.
Home currency adjustments are calculated based on unrealized gains and losses.
For example, for a customer invoice, gains or losses are unrealized until payment is received; after that, they’re realized and a currency adjustment is no longer applicable.If there are no transactions, we can edit an existing customer or vendor; otherwise, we’ll have to create a new record.We’ll start by creating a new customer and specifying that this customer will be accounted for using the €, or Euro.Until a home currency adjustment is recorded, balance sheet accounts represent the value in the home currency at the exchange rates used at the time each transaction was recorded.