how to select the exchange rate for recording?

Hi,

When recording income or expenses in Quickbooks the software will convert the US$ into Canadian $ if your home currency is set in Canadian $.

However when selecting the exact exchange rate which rate should one person utilize? The one used to convert your US$ into your home currency, or the one used to convert your home currency into the US$ ? There is a 2-3% difference the banks charge thus shouldn't I use the exhange rate that it costs to take back my US$ so I don't exclude the loss ?

Or maybe for income calculations use the lower rate ? and the higher rate for expenses ? hahah LOL. Or keep them consistant.

Thanks

Reply to
Curious George the Monkey
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Well, well - one of the Curious Georges (presumably living in Canada) has discovered that the domestic version of QB is multicurrency.

Why do you have to select an exchange rate, Curious? It costs what it costs in loonies and you make what you make. Or are you recording transactions posted to foreign bank accounts? Or raising invoices in some foreign currency (USD?) and using accruals accounting (so that you need to account for any difference in the loony value between the invoice date and the value date of payment to your Canadian account)?

Reply to
Paul Danaher

That's why I dumped my US Dollar bank account. I now enter the Bill when I make the wire transfer or get a Bank Draft (guess that is a Cashier's Check in the US) and add a second line of CGS for the amount of exchange and note that in the memo field. Reason for that is my searches usually are on the nominal amount, not the actual CAD amount.

Depositing a cheque in USD gives the exact CAD exchange as of that date.

From reading the Revenue Agency's bulletins, the Government prescribes USD to CAD exchange rates applicable for certain dates.

Maybe "!-!" can shed a little more light on that. Arno

Reply to
Arno Martens

prescribes

Reply to
!-!

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