Hi WHMS ,

Thank you for reaching out. From your message, it seems you've encountered difficulties when trying to reconcile these balances by using the Sales Journal, which results in the A/R going back to its original value.

There is a process within Sage 50 to revalue foreign accounts using a different currency exchange rate, which could be helpful in your situation:

1. Go to the home screen of Sage 50, click on 'Reports'.
2. Select 'Financials', then choose 'Balance Sheet'.
3. In the 'Balance Sheet – Modify Report' window, respond YES to "Do you want to revalue your foreign accounts using a different currency exchange rate?"
4. Adjust the exchange rate in the currency exchange table that appears.
5. Click 'OK', and your Balance Sheet should reflect the changes in your home currency.

It's important to note that this solution is only applicable if your Aged report and Trial balance reports match without discrepancies.

If this does not solve your issue, there might be a need to make a General Ledger entry as per this article's advice. Since the recalculated numbers only appear on the balance sheet report for reference and do not update your foreign account balances, a manual entry might be required to adjust the balance in your Account(s).

For further assistance, you may want to consult this article on the issue with the foreign currency bank account for detailed steps.

If you require more detailed guidance or if your reports do not match, please feel free to reach out to our support team or let us know here. We are always here to help you navigate through these processes.

Warm Regards,
Erzsi

Thank you for the reply.  This did not fix the issue.  To be more precise here is an example of what the problem is.

Trial Balance

A/R - Swiss Franc - 0 but it shows a credit of .56 

The accountants want the Swiss Franc A/R to show a zero balance in the debit and credit column.  Mine 0.56 credirt.  This is due to foreign exchanges rates when posting.

I show similar issues for A/P foreign currencies.

Hoping someone is familiar with this issue, and can provide a fix.

Have you checked your Customer Aging report to see if there are any foreign currency transactions that have not been finalised yet?  It is possible that there is an invoice for SF$100 @ 1.5  and a credit invoice posted with a different exchange rate.  If the credit has not yet been applied to the invoice, there may still be a CAD equivalent in the reports.

See the two images below.  The first image is the dialog to create the report in the second image.  The second image shows a Euro customer with no dollars owing but all three invoices are unpaid.  The cleanup would be to go to Receipts and pay the credit against the invoices.

Because in this sample file, I had unlinked the Accounts Receivable linked account while foreign currency transactions existed, the balance on the Trial balance for Euros on the same date as the Customer Aging was EU0.00.  However, after posting the credit invoice it was a credit of 6308.18.  Original invoices exchange rate was 1.1, credit was 1.2

Normally in CAD, if you pay one invoice against a credit of the same amount, then the entry is $0 and therefore there is no journal entry.  In this case, there is a journal entry of $525.68 (0.1 difference in the exchange rates).

The unpaid transactions may not be the issue but it is worth checking.  You will not see the outstanding invoices on the summary but you will on the detail report if they exist as unpaid and if you follow the steps below.  The cause may be that the Accounts Receivable Linked account was unlinked at one point.

Thank you for your reply.

I have a few CHF clients I invoice in that currency.  All invoices and credits have been cleared.  I think this small value happens because I post invoices based on the BOC Rates per invoice date, then once Invoices are paid I will use a different rate which is based on the BOC Rates.

Not sure if you will find this helpful, but only rarely do we have currencies other than CAD.  I should also note that I have a USD bank account but we report in CAD. 

This is how I handle it:

For example, for a sale to the US, I enter the sales invoice amount in USD (CR to Sales), then add a second line on the invoice with the exchange amount on that day (also CR to Sales).  A third line on the invoice is a negative of the same amount on line two (DR Exchange Expense).  This will give you an invoice to provide to the company in USD (of $38,000.00 in my example below), and will provide an approximate sales value in CAD for your internal reporting.  The Receipts journal entry will look like this:
     DR - AR     $38,000.00
     DR - Exchange Expense     $13,000.00
     CR - Sales     $51,000.00 (this will be a combination of Lines one and two, the actual value of the sale in CAD)

On the day of the receipt of funds, I calculate the actual exchange on that date and make the correction to the sales invoice by adjusting the original sales entry to read:
     DR - AR     $38,000.00
     DR - Exchange Expense     $12,851.20
     CR - Sales     $50,851.20

Then I can post the actual USD payment received, which will look like this:
     DR - USD Bank     $38,000.00
     CR - AR     $38,000.00

Thank you for your input.  I called Sage and this issue is actually something that cannot be corrected.  I can send my files into Sage and they will fix the issue.