Inventory that is bought and sold in foreign currency still has value

1

I bought stock in USD. Then I sold all the stock in USD as well. Right now the quantity for this stock is 0.

Both my receipts and payments are in USD, and they have been correctly entered.

However because my base currency is in AUD. It appears that in my balance sheet, this stock still shows up. It appears that the foreign currency value changed over time, and therefore according to the balance sheet I have not “cleared” the value of the stock. How do I ensure that the stock in the inventory is considered to have $0 value in my balance sheet?

Note that the stock was sold for a higher price after I had bought it. I didn’t use purchase invoices or sales invoices, just direct receipts and payments. Is this correct?

2

It is impossible to answer your question without being to trace the entire purchase/sales history of the inventory item and your entered exchange rates. It might be easier to obtain help if you create a test business with a single inventory item and illustrate the issue with screen shots. If there is a problem like you describe, it should show up in just a few transactions, whereas your real business issue might be affected by dozens or hundreds.

If you did everything correctly, an inventory item with no units left in stock should have zero value in Inventory on hand. Foreign exchange effects should automatically show up in Foreign exchange gains (losses).