At the end of a reporting period, when you need your financial reports to reflect a current home currency value of your foreign balances, enter a home currency adjustment. Until the home currency value of your foreign balances is recalculated using current exchange rates, your reports reflect the home currency value based on the exchange rates used at the time of each transaction.

Important: Home currency adjustments change the home currency value of your foreign balances. These adjustments affect your balance sheet accounts and we recommend that you work with an accounting professional before entering these adjustments.

Note: Home currency adjustments do not change foreign balances. They only change the home equivalent of a foreign balance.

 

1. Go to Company, select Manage Currency, and choose Home Currency Adjustment.
2. Select the currency you'd like to enter the adjustment for. You can make adjustments for only one currency at a time.
3. If necessary, update the currency's exchange rate. QuickBooks uses this rate to recalculate your home currency balances. By default, QuickBooks uses the latest exchange rate listed in the currency list.
4. Choose Calculate Adjustment and QuickBooks displays the balances you have for accounts in the selected currency.
5. Select the column to choose the accounts to make adjustments for and Save.

Note: Though QuickBooks changes your home currency values in your accounts after making a Home Currency Adjustment, it will not change these values on your Unrealised Gain/Loss Report.

This is because the Unrealised Gain/Loss report only displays unrealised transactions i.e. transactions that have been entered but whose gain/loss has not been realised yet.

If you need to check if you have accounted for unrealised gain/losses, simply use the Home Currency Adjustment wizard and QuickBooks will tell you if you need to make the adjustment.

 

After using the Home Currency Adjustment wizard, you will want to view the adjustment in the Realised Gains/Losses report. However, it may not show up initially.

To ensure you can see the Home Currency Adjustment in the report, follow these steps:

1. Click the Reports menu, then select Company & Financial
2. Click the Realized Gains & Losses report.
3. In the window that opens up, click Modify Report.
4. In the Modify Report window, click the Filters tab
5. Below the Posting Status section of the Filters screen, select Either.

Once the Posting status is changed to EITHER, the adjustment should show in the Realized Gains & Losses report.