Software: QuickBooks Pro accounting software
To do your monthly currency adjustment, first you need to change your Exchange Rate from your Lists menu | Currency List. Next, you print out Unrealised Gain/Losses report from the Reports menu | Company & Financial | Unrealised Gains /Losses.
Unrealised Gains/Losses report shows the accounts which you need to adjust. To adjust your foreign currency account, go to Company menu, select Make General Journal Entries. You need to create a home currency adjustment journal for each of the foreign currency account.
In the Home Currency adjustment journal, checked the check-box for “Home Currency Adjustment”, all entries in this journal will be in home currency. If you are adjusting your foreign Accounts Receivable or Accounts Payable account, you can use a “dummy” customer or supplier name. Example: if you are creating an adjustment for USD Accounts Receivable account, you will create a dummy customer name “USD AR Adjustment”. In this way, it will not affecting your actual customer balances, when the actual customer making a payment, it will record the actual exchange gain/loss.
At the beginning of the following month, you are required to reverse the home currency adjustment journal, which you had created in the previous month. A new Home currency adjustment needed to be created at the end of the following month to balance up your account.
User should consider getting a QuickBooks Premier version instead of Pro version, which Premier version comes with a Home Currency Adjustment wizard that shortens your home currency adjustment process.