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Xero is recording discrepancies in currencies

Xero is recording discrepancies in currencies

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 Xero is recording discrepancies in currencies even when there is no currency exchange. For example, one of the invoices was for 945 EUR and customer paid 945 EUR. Xero recorded a loss of 25.40 GBP for this transaction because the exchange on the invoice date was different than the exchange on the payment date. However, this money was never GBP, so no money was "lost". When eventually we exchange into GBP, that's when we gain or lose. Any help would be appreciated?

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Caroline
By accountantccole
08th Nov 2018 11:12

If you are reporting in GBP then Xero will (correctly) translate at the date the invoice is raised and when money is received. If there has been an exchange movement between those dates it is right to show a gain or loss.

At the date the money is turned into GBP you will get another exchange movement probably as well as a potential revaluation at the year end.

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By Cloudcounter
08th Nov 2018 12:01

I agree that Xero is dealing with things correctly. I like its approach and find it far better than any other multi currency software that I've used.

I suppose that at the end of the proverbial day you either accept the way that Xero does it, or change

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By johnt27
12th Nov 2018 16:54

Both respondents are absolutely correct.

Your only choice if you don't like the xe.com FX feeds is to override them. You can do this globally or on a transaction by transaction basis.

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