QB Issue Resolution:

Since your using the Canadian version of QB it has foreign currency accounting built-in, but it’s an option that has to be switched on.

Sorry to say that almost everything you have been doing is wrong.  Good news is that right ways are much easier and are mostly self-evident once multi-currency is on and setup (which takes a bit).

You will:

Turn on multi-currency and select only USD as the foreign currency to include

create a USD bank account (even if you dont have one)

create a USD customer AR account

create a USD vendor AP account

create new customer records for your USD customers – leave the old CAD records intact

create new vendor records for your USD vendors – leave the old CAD records intact

Now whenever you make a USD transaction you will be recording it QB directly in US dollars.  QB will post almost all the needed exchange entries.

I suggest you do not automatically update exchange rates every day or week – once a month is probably sufficient and will be easier to understand.  Only when you are making cash exchanges with your FX vendor do you need to use the exact rate of that transaction.

Some notes:

The FX company is a vendor and a bank – but never a customer.

A currency exchange is a Transfer between the USD and CAD bank accounts.

Occassionaly (monthly or quarterly) you may post a “foreign currency adjustment” to the USD bank account to change its CAD value to the correct month-end rate.

Resolution for Issue 'How do I record FOREX transactions in Quickbooks desktop?' available: Yes (Solved).
Source: Intuit Community forum.

How do I record FOREX transactions in Quickbooks desktop?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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