Good afternoon experts,
Here I have several transactions where cash are transferred from one internal bank account to another. However, the transactions involved foreign currencies, where money went from our US Dollar Bank Account into our Canadian Dollar Bank Account (thus, exchange USD, the "Local Currency", into CAD). I used Outgoing Payment module to record these transactions, using CAD as the transaction currency. I then set my USD bank G/L Account as the payment means, and CAD bank G/L account as the recipient. The problem is, when I check the USD bank G/L Ledger details, there is an increasing CAD cumulative balance under that USD bank G/L after posting those transactions.
I am wondering how to eliminate that Foreign currency Cumulative balance ( I believe I can post a journal entry to clear them?), and, to avoid this problem in the future, what method should I use to post these inter-bank account transfers?
Thanks,
Sunny