Happy to help, @khin.
I'll share some details on why there is a gain and loss amount when revaluing the currency in QuickBooks Online. This way, I can guide you accordingly.
The Gain or Loss results from a change in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated. This is recognised via the exchange rate field in the invoice. They represent an increase or decrease in both of the following:
- The actual functional currency cash flows are realised upon settlement of foreign currency transactions.
- The expected functional currency cash flows on unsettled foreign currency transactions.
For example: When you record the invoice at a rate of 1:1.5 and subsequently, QuickBooks records the payment at 1:2.0. There will be an exchange gain or loss based on the invoice value X the difference in the exchange rate (0.5 difference here).
To avoid this, ensure the exchange rate is the same for the invoice and payment. I'd recommend editing the transactions individually to fix the gain and loss.
For more information about exchange rates and other currency frequently asked questions, visit this link: Set up and use multicurrency in QuickBooks Online.
Moreover, read the following articles below to help you create home currency adjustments and other related matters:
It was an absolute pleasure helping you today. Don't hesitate to reach out if you ever need assistance in the future with exchange rates. I'm here to help you out.
