Exchange Rates

Exchange Rates

Exchange Rates hold the value of each foreign currency against your home currency. They are what let the system convert a foreign transaction into your books, and keeping them current is what prevents unexplained gains and losses appearing later.

Where to find it

Go to Banking > Settings > Exchange Rates.

Currency Selection

Choose a currency first — the dropdown lists everything activated in Currencies. Selecting one loads the history of rates recorded against it.

Historical Rate Table

ColumnDescription
DateThe date the rate applies from.
Exchange RateThe value of one unit of the foreign currency in your home currency.

Rates are historical rather than a single current figure, so a transaction dated last month is valued at last month's rate.

Updating Exchange Rates

  1. Select the currency.
  2. Enter the date the new rate applies from.
  3. Enter the rate and save.

Where Auto Update is enabled on the currency, rates are fetched automatically and you only intervene to correct or override.

Important Logic

The system uses the rate effective on the transaction date, not the rate today. A missing rate for a given date means the system falls back to the most recent earlier rate — which is why a gap in the history shows up as a valuation that looks wrong rather than as an error.

Because a transaction and its settlement can fall on dates with different rates, the difference is recognised as an exchange gain or loss against the account set in System and GL Setup.

Related pages

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