For most clients using FX bank accounts I convert manually, but have one client who uses the multiple currency feature in Xero. I am getting a large entry to the P&L for 'bank revaluations'. Xero does not allow drill down to this account to see what is behind the balance and there are dozens of merged posts on the Xero community site claiming that Xero is dealing with FX incorrectly, which is slightly worrying.
On the Fx report, the bank revaluations are listed as unrealised gains. The amount in question on the P&L account amounts to £1,011 (bank revaluations) for a Euro account with £10k in it. It doesn't seem right
Reason for the post is that I was dubious as to whether this P&L gain was correct, so I did some research and it seems I'm not the only one, so does anybody know whether there is an issue with the way Xero deals with this?