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Quick Books 2009 provides reports for both unrealized and realized gains/losses, so we’ll see this in greater detail when we review these reports and the impact of entering a transaction that originated in a foreign currency.Rounding out the Multiple Currency menu are 2 help tools.Home currency adjustments are calculated based on unrealized gains and losses.For example, for a customer invoice, gains or losses are unrealized until payment is received; after that, they’re realized and a currency adjustment is no longer applicable. That means an accounting system needs to support multiple currencies, and Quick Books 2009 meets that need with support for all global currencies.Let’s see how Quick Books multi-currency features are implemented.Both the invoice and the payment will be recorded in the same currency, the Euro (€).

That’s the adjustment at the end of an accounting period to reflect exchange rates on the financial statement date rather than the original transaction date.

Until a home currency adjustment is recorded, balance sheet accounts represent the value in the home currency at the exchange rates used at the time each transaction was recorded.

If the exchange rate has increased, your home currency buys more of the foreign currency, so the home currency adjustment will result in an unrealized gain.

Next, we’ll produce a customer invoice but we’ll change the exchange rate to 1 Euro (€) = 1.5 US dollars.

At this point, because the customer invoice has not been paid, any foreign exchange-related gains or losses are unrealized.