How do I correct Currency Gain/Loss?

How-to
1

I am entering sales invoices for the first 3-month period of my business from April to June 2015, when the pound sterling was much stronger. I receive payments in Euros and Dollars, and QuickFile is generating a large surplus Currency Gain, presumably because it is using today’s rate from XE rather than the rate during the relevant period last year.
Is there any way to change the conversion rate on the invoice manually or by any other means? Trying to edit the invoice, the exchange rate is greyed out and unalterable.
The result is a larger profit, which is not actually the case.
Any help appreciated!
Thank you.

2

Hi Oye,

Do you mind if I ask did you issue and receive the funds in other currencies?

Kind regards,
Chris

3

Hi Chris, Thanks for your reply.
I receive payments in dollars and euros and have to pay personel abroad in US dollars as well as other expenses such as website hosting in USD. It is just that in the first 3 months there was quite a large payment in with relatively little going out. So the Currency Gain is quite a lot since the pound fell from 1.55 to 1.40

4

Then I think I may be the bearer of bad news. It sounds to me like that is a gain in revenue caused by exchange rate movement, which unfortunately means they have to be carried to your P&L.

Kind regards,
Chris

5

Hi Chris. Thanks for the bad news! That means that one has to enter any foreign payment at exactly the time you receive it - one cannot update the accounts 3 months later as the exchange rate will automatically be calculated at the current rate. Would it be OK to put in a “purchase” for the exact amount and link it to that currency gain somehow?

6

I may be imagining it but I’m sure @Glenn has said in the past that they use historical rate information from xe.com to find the rate at the date of the transaction rather than the date of entry.

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7

As @ian_roberts mentions, we use archived daily xe.com rates going back 5 years. The rate applied will be that of the transaction date not the date of entry.

8

Great! That was what I was doing wrong! Changing the invoice date gets rid of the currency gain.
Thank you!!

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9

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