Euro bank balance displayed incorrectly in balance sheet in GBP

Seems I find a bug as follows:
Suppose I have a EUR bank account. During a finical year, it gets 100 EURO (sales) and spends 100 EURO (purchase). At the end of the finical year, the bank balance is 0 EURO.
The figure of bank balance in the balance sheet shall also be 0 GBP (=0 EURO). However, it is 4 GBP in the balance.
The reason seems to be:

  • When the money is in, the currency of GBP: EUR that day is low, e.g. 1 GBP = 1.15 EUR, then 100 EUR in is 87 GBP.
  • When the money is in, the currency of GBP: EUR that day is high, e.g. 1 GBP = 1.20 EUR, then 100 EUR in is 83 GBP.
    The result is that the balance sheet sums the two days: +87 GBP, - 83 GBP, finally, there’s 4 GBP in the balance sheet.

I think in the balance sheet, the figure of the bank account shall be 0 GBP, and there’s shall be 4 GBP of currency gain.

NB. I also use freeagent software. They have the correct numbers. Maybe you can have a look at the software.

I think it is not a bug. Quickfile calculates everything in GBP and has to calculate EURO in GBP. As you said, on two different days the exchange rate is different and makes up those balances.
Have a look here, that may helps: Invoicing in foreign currencies

Hi @Peter_Wang

You are correct that the difference should be under the currency gain nominal - you must create a journal for this yourself. It isn’t automatic. depending on how often you want to reconcile your account you could record these journals at month end, quarter or year end

There is a feature request that I’ve found for this to be done automatically which you may want to add your vote to here: Automatically handle currency gain/loss for foreign currency accounts

Thanks for your reply.
I tried to create a Journal to adjust the figure of balance sheet be correct, however, it makes the balance of the bank account incorrectly.

I think the bank account balance shall only be infected by transactions, but not by Journals. In this way, the bank account balance will always be the same with the bank.

thanks for your reply. It helps.
If this can be done automatically as Freeagent does, it’s cool.

Hi,
there is a tool/app in the marketplace within quickfile. If you go to https://YOURCOMPANY.quickfile.co.uk/services/marketplace
you will see:

I have to say, I don’t use this tool but it should do the job.

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