I set up a foreign currency (US dollars) account in Quickfile in 2014 for a US dollar invoice I needed to create at the time. It was paid in full in GBP (the only real currency of my Quickfile account). The Quickfile ‘bank’ account was not a physical account, just a virtual account for this 1 transaction.
No matter what I do to write it off using journals, whenever I look at the balance sheet, it shows a non-zero balance even though it shows zero in the All Bank Accounts view. What do I need to do to get rid of it please?
Just to clarify - the bank account is a USD account with a $0.00 balance, but has a GBP balance on the Chart of Accounts. Is that correct?
Yes. Here’s the two states: If I journal off the discrepancy, the Chart of Accounts and Balance Sheet show zero (default currency is GBP), but the USD Bank balance shows the discrepancy.
If I remove the journals, the USD Bank balance shows zero, but the Chart of Accounts and Balance Sheet show the discrepancy.
The journals move the money from the USD Bank account to Petty Cash (GBP) as I’m not sure where to ‘write off’ this amount so to speak (obviously, USD to GBP isn’t going to work without some kind of exchange rate, so I’m probably confused - or maybe that’s part of the problem).
It’s only a small amount ($35), but would be nice to know how to deal with it properly and return everything to zero for this one historical sale. Thank you for any help.
PS. Here’s how I originally recorded the gain:
There’s a special option somewhere in the bank account settings to record a currency loss/gain, what this will do is revalue the GBP nominal balance of the account based on the foreign currency value at today’s exchange rate, without affecting the foreign currency balance. If you do that it should zero out nicely, with the balancing entry going to “currency charges”.
Thanks @ian_roberts and @QFMathew - I reversed all the original journals, added the new ‘special’ journal, and everything is at zero. All good. Feel free to close this. Thanks again.
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