Multi Currency Inter company transactions

[Ann Daechsel]

We have companies with base US and Canadian $. the scenario I am trying to do is: the Canadian company sent Canadian expenses to the US company (inter company is recorded in CDN $). The US company pays in USD (inter company is recorded in US $). the inter company account is translated at the date of transaction but there is a disconnect with the currency and the revaluation process picks up the unrealized gain/loss for the Canadian amount and this will never clear. How do I record the USD payment that clears the CAD balance?

Has anyone figured out how to do this?

 

[rsvconsulting]

If you have setup multi-currency intercompany correctly there is an automatic settlement process that occurs. Further depending on whether you employ the detail restatement or balance restatement the proper setup would avoid your scenario outcome.