Foreign Currency Account transfer to Cash at Bank Account

Example of steps to transfer the balance of a USD account to an AUD account.

Created a foreign currency bank account that contains US Dollar value of $4825.85

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Click Show in AUD, this translates to Australian Dollar value of $6282.84

Prepare a payment out of the USD bank account coded to the AUD Bank account for the US Dollar value and the AUD value is calculated to 6282.84 based on the exchange rate currently in the system.
Click the Exchange Rate, then click Calc and enter the actual AUD value of this transfer.

The AUD value of this entry has now updated

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This has reduced the USD balance of the foreign currency account to 0.00 when shown in USD.

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But when viewing the AUD balance it still shows a balance which is a result of the change in exchange rates.

To deal with this AUD balance you need to create a Foreign Currency Gains Loss journal entry. To do this you need to open the Foreign Currency Gains Loss account and create a journal from in there. This will allow you to code the entry to the USD bank account with an AUD only value

The resulting USD Bank Account will now show a 0.00 USD balance and a 0.00 AUD balance

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