Foreign currency - Change exchange rate behaviour
Re: Handling of Mutly-currency/translating foreign currency amounts into the functional currency
Multy currency is currently not fully supported in xero.
A foreign currency transaction should be recorded initially at the rate of exchange at the date of the transaction and then, at each subsequent balance sheet date, foreign currency monetary amounts should be reported using the closing rate.
This is true in xero only for Bank accounts, accounts receivables and payables set in foreign currency but not for other account.
As a result users are required to input periodical manual adjustments at each balance sheet date.
We ask Xero to take in consideration such issues, to review them and take action now.
Davide Scott commented
Vital - our business is needing to manage multi-currency assets and liabilities.
There should be a setting within each account (much like where default VAT rates and account codes are defined in the Chart of Accounts) defining the currency of the account.
When reconciling a transaction into the account, the spot exchange rate is defined and the actual value of the transaction in the foreign currency is recorded into the account. From then on, the account is automatically "exchanged" into the home currency in reports, with the exchange rate being defined by the report date (as usual).
This would only need to be applied to asset and liability accounts.
Gina Kerk commented
Hopefully will have the funtional module for revaluation for AP/AR.
Chris Bisson commented
Salonee Verma commented
Yes, we have assets in foreign currencies and need to manually revalue them each month. Quite a pain to compensate for what should be a standard feature (as it is in Quickbooks online).
Michal Bayer commented
I need automated unrealised gain/loss for non-current assets. End of period and more importantly end of year P&L needs to be adjusted!
Ciara McCann commented
We have clients that are multi currency users. Currently we cannot run our payables or receivables in any other currency. It is extremely frustrating and we constantly have to work on estimated figures based on average exchange rates.
The FX features are pretty poor and definitely need focus to get Xero up to the standard of other accounting software.
Michelle Kneen commented
This is vital to us as a Multi-Opex and Multi-Currency company. Had we known that this is an issue then maybe we would not have moved to Xero!!
Danietta Janse van Noordwyk commented
Do we need to look at alternative accounting packages or is Xero going to resolve these issues?
Aurore Prefumo commented
I agree with Ms Murino. Currently manual adjustments are required at each balance sheet date.
In addition and separately, I would like to also suggest making expenses claim in foreign currencies to be easier. When I used it in the past, the currency translations were not correct and we could not register a client to use it.
Marina Loi commented