What is a home currency adjustment?
A home currency adjustment updates the home currency value of your foreign currency balances to reflect current exchange rates. This ensures your balance sheet accounts show the accurate value of your foreign assets and liabilities at the end of a reporting period.
We recommend working with an accounting professional before entering these adjustments, as they revalue balances and can impact your financial reports.
How home currency adjustments work
QuickBooks Online calculates the difference between the current exchange rate and the rate used when the transaction was originally recorded. This difference is posted as a gain or loss, typically affecting your unrealized gain/loss accounts.
- What it changes: The home currency (equivalent) value of your foreign balances.
- What it does not change: The actual foreign currency amount of the transactions.
How to perform a home currency adjustment
- Go to Settings (the gear icon) and select Currencies.
- Select the Currency Centre tab.
- Find the currency you want to adjust and select Revalue from the Action column.
- Select the accounts you want to revalue.
- Enter the exchange rate you want to use for the revaluation.
- Select Save and close.