QuickBooks | Home Currency Adjustment disappears after upgrade

Software: Reckon QuickBooks (Reckon Accounts)

For those users who upgraded their Reckon QuickBooks (especially upgraded from version 2011/12) to version 2012/13 or Reckon Account 2013 may have an error on those Home Currency Adjustment journals, which they had entered in the previous version of Reckon QuickBooks.

Assuming your Base Currency is SGD and you did a home currency adjustment in your earlier version of Reckon QuickBooks for SGD 100.50 gain for your USD Customer.

The double entry for this Home Currency Adjustment journal will be:

Account Debit Credit
USD Accounts Receivable 100.50
Exchange Gain/Loss – Unrealised 100.50

This is a home currency adjustment, it should not have any physical impact on your USD owed by the USD Customer.

However, after you migrated from your previous version of QuickBooks (especially from version 2011/12), this home currency adjustment journal that you did earlier will be converted into a USD amount instead of remanding as SGD (home currency).

To resolve the issue, you need to add a >.< into the memo field of your home currency adjustment journal. Example:

Account Debit Credit Memo
USD Accounts Receivable 100.50 >.<
Exchange Gain/Loss – Unrealised 100.50

This journal will allow Reckon QuickBooks 2012/13 (or Reckon Account 2013) to re-calculate and record it as a SGD (base currency) instead of USD amount (foreign currency).

You can view all your home currency adjustment journals by filtering your Custom Transaction Detail Report with Journal transaction for the Transaction Type and home currency adjustment account (such as Exchange Gain/Loss – Unrealised account) for your Account filter.

More information: http://www.quicken.com.au/kb/issue_view.asp?ID=4504