Marcdu,

Even though the result will be the same, I still suggest you to use General Journal entry to do fund transfer involving different currencies.  The reason is that you can open the General Journal Entry Report to confirm before you post.

No matter you use Transfer Funds or General Journal, when you select a foreign currency under the Currency box, it is the foreign currency that will be used in the transaction.  In your case, it will be US dollars.

You will need to do a small calculation to get your US dollars amount for the entry.  For example.  If you know the amount of Canadian dollars you want to transfer is $100.00 and the current exchange from US dollars to Canadian dollars is 1.06, the amount of US dollars you need to use in the entry will be $100.00/1.06 = US$94.34.

You can take a look at the following screen shot.

Hope this helps.

Thanks Keith. I'll try it and see what happens. As long as the books balance, that's all that really matters ;)

I made an entry similar to yours above and it shows everything correctly in my accounts for Cdn bank and USD bank but the exchange doesn't show up anywhere.  I did associate an account to exchange and rounding in the settings but it doesn't generate to that account.  So how do i enter exchange to account for the difference between CDN and USD?