Hi there,
As we are using fix rate, the account of Foreign Exchange Gain or Loss is not necessary for us. Are there some way to inactive it?
Thank you
The account was activated automatically because you have at least one cash account, customer, or supplier denominated in a currency different from your base currency. It will disappear only if you denominate everything in the same (or no) currency.
Thanks for your reply.
Does it mean that I need to update exchange rate on daily basis?
No, only when you want an accurate financial statement. For example, foreign currency bank accounts can sit there, going up and down in value compared to your base currency. But 500 Euros will still be 500 Euros. A year-end balance sheet, though, should be adjusted based on whether that converts to A$550 or A$600.