Bank account shown as liability on balance sheet

[ceeb]

I have various bank accounts and all appear as “Current Assets” in the Balance Sheet report.

Except one: a PayPal USD Merchant account which appears in “Current Liabilities”?
I don’t know why? I’ve only received payments into it and it seems no different to other merchant accounts.

Note the account was changed to a merchant account by Quickfile support a couple of years ago.
Perhaps there are settings I can’t see?

[QFMathew]

Hi @ceeb

I’m assuming the balance on the bank account is positive or zero? If that’s the case, it could be a currency variation that’s causing this given it’s a USD account.

Have there been any currency gains/loss journals recorded on the account? No worries if not - we can point you in the right direction

[ceeb]

Hi @QFMathew.

It’s positive and has only received payments since September 2022.
At that time I converted to GBP (in PayPal) which made gains.

[QFMathew]

Thanks for the information @ceeb. Have any currency gains/losses been recorded on the account?

[ceeb]

I don’t recall recording any myself? Is there a specific account that would be recorded to?

[QFMathew]

Any non-GBP account will need to be adjusted due to currency fluctuations. So although the bank account has a balance in it’s currency (e.g. USD), in the background and on reports like your Chart of Accounts and Balance Sheet, there’s a GBP balance.

On the bank account itself, you can go to Options and record the currency gain/loss there. The values here only affect the GBP balance.

As an example, let’s say the balance of your USD account is $100.00, and the GBP value currently on QuickFile is £80.00. But as of today, the value is £75.00, so it needs to be adjusted down £5.00. I’ve kept the numbers simple for the purpose of this example.

To do this, I’d go to record a currency gain/loss, and enter the following journal entry:

This then adjusts your chart of accounts to the new value, and the bank account balance remains unaffected.

Hope that helps!

[ceeb]

It does, thank you @QFMathew!

Unfortunately, I made currency exchanges in September 2022 (my year end is 30 September) and the “Year End Journals” have already been run for 2022 and 2023.

Is there an easy way to record the gain/loss retrospectively?
Or do I need to delete the year end journals for both years, record the gain/loss, and re-run the journals again?

[ceeb]

Hi @QFMathew. Did you get a chance to look at my query above for recording the gain/loss in previous (locked) years?

[QFMathew]

Hi @ceeb

Apologies, I missed the notification for your post above.

The currency gains/loss would need to be recorded without the year end journals in place as it would affect the chart of accounts.

[ceeb]

Thanks @QFMathew. So would it be possible for me to delete the year end journals, make the change, and run the year end again? I’m a little wary of doing something catastrophic!

[QFMathew]

Hi @ceeb

The figures in your year end process may have been used by your accountant when filing any documents, so if there are any changes, it’s worth bringing this to their attention, just to be safe.

But this post by my colleague should help with reversing the year end process:

Year end 2022 - error posting

Hello @justbreve You can delete the year end journal from Reports > Journals and remove the lock date from Account Settings > All Settings > Account Lock Date to allow postings into the previous year. When you are ready you can go to Account Settings > All Settings > Year end process to re run the year end (which will in turn recreate the year end journal),

Hope that helps, but if you get stuck, just give us a shout