Multicurrency - Ability to change the setting of Unrealised forex
CX0012821665 refers.
It would be good if Xero could turn on the functionality to post the theoretical Unrealised forex entries that it is calculating as a reversing entry. It would be a bonus if Xero gave the business the option to have it posted. Without this, because its not a journal, it doesnt reflect in my BI system. To post a manual entry is not a solution as then both entries appear on the TB
Adele Lappin
shared this idea
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anthony liew
commented
May I know why Xero will capture interbank transfer forex as realized gain/loss? It should be unrealised forex
eg. transfer EUR500K from CIMB EUR to CIMB USD
CIMB USD account receive USD 547.90K
but our account book rate is EUR 1.05
EUR 500K @ 1.05 = USD525KDr. CIMB USD - USD 547.90K
Cr. CIMB EUR - USD 525K
Cr. Forex Gain - USD 22.90This USD 22.90 should be realised forex
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Oliver Dillon
commented
The problem with the existing process is that the unrealised variances accumulate. Some months the swing in revaluations due to fx rate changes on the closed historical transactions can be several times the actual balance in the account.
In a complete 'Realisation' system the units of currency would be treated in the same way as invoices and Revaluation of the Cash movements would be posted as the Cash is spent.
This is something we used to do as a manual journal on a monthly, or quarterly basis as it was more practical. We used a FIFO basis so that there was still an unrealised var after the journal but it was not an accumulation of historic variances.