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Bank Account in Foreign currency

msamanoudy2msamanoudy2 Member Posts: 9

Hello, I am having an account in foreign currency (USD) however after a couple of transactions i found that the balance in equivalent local currency is not reflective and the difference most probably automatically reflected in the loss on foreign exchange and balance became in negative sign!!!....what is the advise to adjust the balance in local currency?

in Accounting Technical Support

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  • msamanoudy2msamanoudy2 Member Posts: 9

    an update when i tried to create a journal in local currency from P&L to balance sheet account, the bank balance in foreign currency changed as well!!! so it turned to be in conflict with the bank statement..

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @msamanoudy2.

    This can happen with foreign currency accounts, given how exchange rates fluctuate. The exchange rate for a given transaction is always going to be the mid-market exchange rate from xe.com on the date of the transaction. As such, it can cause discrepancies like this.

    As long as the balance in your account matched the balance of your foreign currency account as shown in the Accounts Transactions report, you should leave it as is.

    Since Wave has limited multi-currency support, there's currently no simple way around this. If you give me more information on what you're trying to reflect in your account right now, I might be able to offer a solution. With that said, note that you can't change the amount in USD and the amount in your local currency for that account independently.

  • msamanoudy2msamanoudy2 Member Posts: 9

    I understand the limitation consequences and accordingly from accounting perspective that would be wrong reporting in financial statements as it should be reported in equivalent local currency properly, which is not the case. you must at least allow manual journal entries to rectify such a deficiency. Thanks

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Thank you for your feedback, @msamanoudy2.

    We are looking to continue improving on our support of multi-currency businesses, but I don't have details or a timeline to share just yet. I can tell you that we are aware of how many of our users would benefit from better multi-currency support and we are listening.

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