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 Odoo 49,971 66,739 Withdrawal $49.0K USD converted to $67.7K AUD by live exchange rates in Odoo -49,000 -67,713 Closing balance 971 -974 How do you fi

Foreign Currency Bank Balance Wrong

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Foreign Currency Bank Balance Wrong

exchange bank currency foreign v14

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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 Odoo	49,971	66,739
Withdrawal $49.0K USD converted to $67.7K AUD by live exchange rates in Odoo	-49,000	-67,713
Closing balance	971	-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

Ermin Trevisan

There can no help be provided without the opening balance.

Dan Cadieux

Autor

Ermin - the opening balance was zero in both currencies

Ermin Trevisan

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

Dan Cadieux

Autor

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

Autor

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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