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C
carey.teo
February 17, 2026
Question

Unrealised Forex Gain/Loss in P&L showing cumulative since inception instead of current FYE only

  • February 17, 2026
  • 1 reply
  • 6 views
I’m facing an issue with foreign currency revaluation in QuickBooks Online. When I run the Profit & Loss report for FYE 2025, the Unrealised Gain/Loss amount shown is cumulative from the company’s inception date, instead of reflecting only the movement for the current financial year (2025). My expectation: The Unrealised Gain/Loss in the 2025 P&L should only reflect the revaluation movement for FY2025. Prior year unrealised amounts (e.g., 2024) should not be included in the current year P&L. However, it seems QBO is carrying forward previous unrealised amounts and including them again in 2025. Some questions: Is this the correct system behaviour in QBO? Should prior year revaluation journals be reversed automatically at the beginning of the new financial year? If I want P&L to reflect only FY2025 unrealised movement, what is the correct treatment? Do I need to manually reverse the 2024 revaluation? Or is there a setting/report filter I’m missing? For context: I am using the standard “Revalue Currency” function. Multi-currency is enabled. The report period is correctly filtered to FY2025 only. Appreciate any clarification from those who have handled year-end forex revaluation in QBO. Thanks in advance.

1 reply

A
Anonymous
February 17, 2026

Hello there, Carey. Yes, that's exactly how QuickBooks works. In QuickBooks Online, when you revalue foreign currency, it revalues all open balances regardless of the transaction year. For example, if there are invoices from 2024 and 2026, and you revalue the 2026 transactions, QuickBooks includes both in the revaluation process. It does not separate transactions by year during the revaluation.

When generating a Profit & Loss report, you can set a date range to display data for a specific year, such as fiscal year 2025. However, the Unrealized Forex Gain/Loss will still factor in amounts from prior years because QuickBooks revalues all transactions up to the report’s end date.

Revaluation journals won't be reversed automatically. You can reverse them. However, it still depends on you. For more details, refer to this article on unrealized gains/losses.

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