Many accountants I’ve met understand accounting, but not the Multicurrency functionality in QuickBooks. I’ve seen lists of year-end adjusting entries that clients are supposed to enter into QuickBooks, and it’s clear that the accountants who created them don’t understand QuickBooks. If I see an adjusting entry that tells a client to add or take away a certain number of foreign currency units to allow for its value in the home currency, I know I have to intervene. Instead of a regular journal entry that will mess with the foreign account’s reconciliation, I show my clients how to create a Home Currency Adjustment (in QuickBooks Desktop) or a Currency Revaluation (in QuickBooks Online). These special entries do not change the number of foreign currency units in, let’s say, a foreign-denominated bank account. Instead, they keep the number of foreign currency units (e.g. Euros, Pounds Sterling, Pesos, etc.) unchanged, and change their value in the home currency. The posting affects Exchange Gain or Loss.