xero- how to record currency fair transactions

[sbears]

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Hi All,

Do anyone have any suggestions on how to go about recording currency fair transactions in xero when we don’t have multi currency available?

We are using currency fair to pay one of our suppliers based in the US. So AUD gets transfered into currency fair, then it is converted to USD and then we pay the suppliers.

Thanks,

Sarah

[Past-Member]

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Have you emailed Xero and asked them first? They usually reply within 24 hours for any questions I send them.
And this page at the ATO might be a good place to start?
https://www.ato.gov.au/individuals/international-tax-for-individuals/in-detail/foreign-income-of-australian-residents/converting-foreign-income-to-australian-dollars/

[sbears]

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Hi Karen,
I have just sent a message to Xero as well. I’m assuming they don’t work over the weekend.
I have recorded foreign transaction based on the way it is described in the ATO link.
But using currency fair we transfer x dollars that may be more than the supplier bill to make sure we will end up with enough to pay them, and the actually amount gets paid from within currency fair.

So when it come to match the invoice to the payment, I don’t have an actually outgoing that matches.

I’m thinking I need to create a Currency Fair bank account, (possibly 2) to reflect the transactions made there.

[Fiso]

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Hi,

as far as I know Xero support multi-currency, you just need to make sure you are on the right plan.

[ShellysBookkeeping]

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Hi Karen,
The easiest way would be to enable foreign currency in Xero and to setup a bank account for the Fair currency. You would then transfer the money between accounts and record the appropriate foreign currency conversions.
To enable foreign currency you may need to upgrade your Xero subscription.
Shelly

[Brendo85]

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How does the multi currency option work in xero? is it a live official rate or do you have the option to input your own values? I cant seem to get my head around if i were to purchase goods overseas and have a receipt in a foreign currency, and then if i were to put that value into xero that my books wouldn’t line up because i would have missing money that would have been lost in the conversion process through fees and commissions, do i just claim the difference as a loss?

Thanks

[Brendo85]

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ok so i think i may be able to simplify this without including foreign currencies in my books can someone please correct me if I’m wrong.

If i utilize the services of a forex payment company in Australia, can i say pay someone through them, then so long as the receipt in foreign currency and the receipt from the forex company stating how much currency i ordered/sent through them match up i can enter the cost into my books as the amount in AUD that the forex company charged me?

Thanks

[@HeatherSmithAU]

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Here is an explanatory video on how to use multi-currency in Xero that I created. Its free to watch – hope it helps [MEDIA=youtube]rBEwLBaqF4E[/MEDIA]

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