Another Petty Cash Foreign Exchange Question

Question

We have a secondary USD Petty Cash, account that should be at $0.00, which it is showing that in CAD side, but the foreign balance is showing -1952.78. How do I clear out the foreign balance but keep Canadian at $0.00?

Richard S. Ridings · Answer

Take a copy of your file and test this on a copy first. I've never seen this issue before, only the reverse (no USD but a CAD balance). 
 Post a General Journal entry to add US$1000 to the Petty cash account and use the Exchange expense account for the credit side. Use an Exchange rate of 1 so that CA$1000 is added to the account. 
 Then post a second General Journal entry to remove $2952.78 from the account. Using the exchange rate of 0.33866 should give you the full CA$1000 credit to bring both the USD and CAD to zero. Again use the Exchange expense account for the credit side. 
 You can look at the journal entry before you post so you can make sure the exchange rate you use on the second one will properly remove the CAD equivalent. If it works, then do the exact same entries on your live file.

Sage 50 Canada

Another Petty Cash Foreign Exchange Question

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