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exchangebankcurrencyforeignv14
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Dan Cadieux

Hi,

Need help with how to correct a foreign currency bank account's home currency balance, it is obviously wrong.  The bank account is in USD and the home currency is AUD.  The balance is +971 USD but -974 AUD.  Here is the scenario


USD (foreign currency)AUD (home currency)
Deposit of $49.9K USD converted to $66.7K AUD by live exchange rates in Odoo49,97166,739
Withdrawal $49.0K USD converted to $67.7K AUD by live exchange rates in Odoo-49,000-67,713
Closing balance971-974
How do you fix that in Odoo 14?

The negative AUD balance is wrong, there is money in the account.  Converting the $974 USD to AUD, you should have around $1,300 AUD.  Yes, it is an exchange difference but how do you correct it by:

1. Not changing the USD balance, and

2. Only changing the AUD balance




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Ermin Trevisan

There can no help be provided without the opening balance.

Dan Cadieux
Author

Ermin - the opening balance was zero in both currencies

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Ermin Trevisan
Best Answer

I can not see anything wrong here. If this is a foreign currency account, the balance at a particular date is a foreign currency amount. At that particular date the foreign currency balance has a certain home currency value based on the exchange rate of that particular date. The single transactions converted to the home currency in the past simply do not matter.

Unrealized gains or losses must be considered at the reporting date. The following post might be helpful:

https://www.odoo.com/forum/help-1/what-options-do-i-have-to-revalue-foreign-currency-holdings-179987

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Dan Cadieux
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I am an accountant :) I know it is wrong from an accounting perspective. The challenge I have is how do you "fix it" in Odoo. The -974 AUD balance is what shows on the Balance Sheet and that is incorrect based on accounting principles. It is looking like an Odoo bug to me

Ermin Trevisan

Ouch :-)
See my amended answer.

Ermin Trevisan

...and it's not a bug, everything is mathematically correct.

Dan Cadieux
Author

That link helped a lot - the Unrealized Currency Gains / Losses option under Reporting calculates the unrealised currency gain/loss so the account balance is "corrected" in the home currency. Thanks!

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