Tag Archives: QuickBooks Multicurrency

QuickBooks Blog | Invoiced in foreign currency but received payment in base currency

 Software: Intuit QuickBooks 2014

Assuming your base currency is in Singapore dollar (SGD), when you create a sales invoice for your foreign currency customer (USD) for the amount of USD 1,000.00 with 7% rated GST (this customer is based in Singapore) at the exchange rate of 1.3000; the double entry for this transaction in Singapore dollar will be:

Debit Accounts Receivable – USD account: 1,391.00

Credit Sales account: 1,300.00

Credit GST Payable account: 91.00

GST is taxable on the income and exposes, hence, GST realised when invoice is created (accrual basis).

When customer made payment to you of USD 1,070.00 and you banked the amount into your Singapore dollar bank account at the exchange rate given by the bank of 1.2500; the double entry for this transaction will be:

Debit Bank – SGD: 1,337.50

Credit Accounts Receivable – USD: 1,391.00

Debit Exchange Gain/Loss account: 53.50

There is no different in the USD amount between the invoicing and receiving (USD 1,070.00), but due to exchange loss, the base currency (SGD) amount received is lesser than the invoiced amount (SGD 1,391.00 in invoice but SGD 1,337.50 in actual receive).

MoneyWorks | Base Currency Value

Software: MoneyWorks accounting software

Assuming your base currency is in Singapore Dollar (SGD) and you have some invoices in US Dollar (USD), the Gross column of the Sales Invoice list will show as the USD amount instead of SGD.

To view the Gross value of the transaction in a base currency (SGD), you can add a new Heading field to the list with column value as:

Gross/ExchangeRate

Although this method does calculate the base value, it is only applicable to the posted transactions. The unposted and base currency transaction will show as 0.00 values.

If you require showing the base currency value for the unposted and base currency transactions as well, then the column value should be changed to:

Gross/if (Exchangerate = 0, CurrencyConvert (1, BaseCurrency, Currency, transdate), ExchangeRate)

MW Base Currency Value

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