Retained earnings & exchange difference

[yy1]

We installed QB Pro recently and selected the industry as general product business.We also activated the multi currency function.In the Chart of accounts I can not find the following accounts:

Retained earnings

Profit or loss on exchange

I thought these are system generated accounts and there is no need for me to create.

I notice the following accounts:

Opening balance equity

Equity

Is Opening balance equity the Retained earnings account?

I would be thankful for an early reply.

[Wartrace]

Opening balance equity is NOT your retained earnings. It is an account used when setting up a new QB's file. When you enter assets you have to have an offsetting account. When you enter liabilities you need an offsetting account.
A properly set up QuickBooks file should show a "0" balance in the opening balance equity account.

As far as the missing retained earnings account, this support article can help you. http://support.quickbooks.intuit.com...icles/SLN42518

A profit/loss on exchange should not be an account in your chart of accounts. Profits and losses should be reflected in a revenue account. If you have a need to track exchange income separate from regular revenue I would create a revenue sub account named "exchange revenue" and use items to point exchange transactions to that account.

[yy1]

Thanks for your reply John.

I will look at the link you have given to see if I can get my missing Retained earnings account.

I installed QB Pro last year at another company and activated the multi currency.Profit or loss on exchange appeared in the COA as a system generated account.When you pay a supplier in foreign currency the exchange difference will automatically go to this account.

[n3ilaxel]

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[yy1]

I have now found the answer to my questions:

Retained earnings

Go to reports and click open the balance sheet

Go back to chart of accounts and open it

Retained earnings account will now appear.Other balance sheet accounts in the COA will show 0 balance but Retained earnings will not show any balance

Exchange gain/loss

Create an invoice in foreign currency

Receive payment for the foregin currency invoice at a different exchange rate

Exchange gain/loss account will now appear in the chart of accounts.

In previous versions of QB these account appear automatically in the COA.I do not know why we have to follow this long route now.