No, I'm not making any adjustments other than to change the exchange rate at the time of matching payments to Euro-denominated or USD-denominated invoices. I change the exchange rate to match that used by our bank. The adjustments in the Exchange Gain or Loss account don't look like the differences, because some are CR and some DR.

Bonny_

Hi nick-hejim,

The automatic adjustments are appearing because the exchange rate while receiving the payment is different to the exchange rate of the original invoice. QuickBooks calculates exchange rates of the invoice to 6 decimal places, and if you match a payment to it with the same precision (same 6 decimal places), it will not create an exchange gain or loss entry, or produce an entry that is at $0.00.

If you click on each entry in the Exchange Gain or Loss account, they will bring you to the payment you recorded against an invoice that had produced the gain or loss amount. You can also check on the payment's transaction journal to see how this amount is calculated:

Select a payment or deposit from the Exchange Gain or Loss account
Select More at the bottom of the screen, then select Transaction Journal.

Note that the amounts can either be CR or DR as the account records both gains and losses.

Hope this helps!

Bonny

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