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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.

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Daniela Murino shared this idea  ·   ·  Report…  ·  Admin →
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  • Peng Huey Ong commented  ·   ·  Report

    Xero should create the sub ledger for able to create additional AP and AR module other than the default AP, AR. Ask us to use bank module to allow us utilised the FX revaluations is not that flexible. Hope this can be available soon. Thank you.

  • Paul Lechner commented  ·   ·  Report

    Xero needs to start thinking Global and Global Businesses need flexibility in how currency conversion are made.

    I have an Advanced Invoice Template. In the template I have a conversion from USD to AUD, it also adds a conversion risk to the AUD amount to allow for minor fluctuations over a day or so whilst the client pays.

    My template also deals with XERO lack of the ability to have a % as a Deposit due now and then the remainder due at a later time.

    When the conversion happens using the «CurrencyRate» tag, it uses the rate from the day the invoice was created (when issued). If that was weeks or months ago, This is a big issue for the second final payment as this can be months to a year.

    I would have thought we could simply automate the tag to look at a live rate verses the rate that the invoice was created («CurrencyRate») but this is not possible.

    I have tried to manipulate the Template to do a live look up, but is doesn't seem like Macro's are retained when XERO is expecting a .docx template.

    I am not looking at a Third party software that ultimately does all the invoicing and live conversions and pushes the information to XERO... It adds a layer of complexity to something that should be simple.

    Anyone got any funky work arounds.

  • François Laisney commented  ·   ·  Report

    International Transfer
    One inputs in Xero the foreign amount, and Xero asks for the RATE on the day of the transfer. I think this is not right: Xero should asks for the AMOUNTS both in local currency (here, GBP) and in foreign currency, and then recalculate the rate from these amounts, rather than calculating the amount from the rate: the bank usually does so, but then adds fees which makes that the effective rate is not exact, hence inputting the rate always leads to inaccurate value and the need for an adjustment - for mere cents: quite a useless complication.

  • Davide Scott commented  ·   ·  Report

    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  ·   ·  Report

    Hopefully will have the funtional module for revaluation for AP/AR.

  • Salonee Verma commented  ·   ·  Report

    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  ·   ·  Report

    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  ·   ·  Report

    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  ·   ·  Report

    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!!

  • Aurore Prefumo commented  ·   ·  Report

    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.