I paid one invoice that is invoiced in US Dollars, so I thought that I would have that supplier default to US Dollars. I put the invoice in for the Dollar amount and on the spend money I paid the British Pound Sterling amount. All seemed to work well as invoice is marked as paid.
However, I noticed that I have an £85.42 loss in currency gains, which is not possible over the space of 1 week. The exchange rate has not altered that much.
I wonder if this is because I did not put in a currency exchange rate in settings? All I did was put the dollar amount on the invoice and the pound amount on spend money.
However, what puzzles me is what use in accounting this gain/loss is. I don’t think that I can claim it as an expense as I have not lost any money - that is just what the exchange rate was on that particular day. Not withstanding the fact that the amount is obviously wrong.