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Currencies and exchange rates

This article deals with the settings for currencies and exchange rates. We also describe how foreign currencies are handled in bexio.
→ For even more depth in foreign currencies in bexio, see the "Fiduciary Best Practice" contribution for foreign currencies: «Foreign currencies in bexio»

 

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Currencies

Add currency (including rounding factor setting)

1. In bexio you can enter new currencies or manage existing ones. The currencies can be managed under "Settings" → "All Settings" → "Functions & Modules" → "Currencies and exchange rates".

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2. The overview lists the currencies already entered. Click on the button "Add new currency" to add more.

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3. Complete the input fields:

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Under "Currency", search for either the three-letter country code (ISO code) or the name of the currency.

Under "Round to" you can set the factor to which you want to round. For 0.01, amounts are rounded to the nearest centime. With 0.05 - to five centimes.

Important: The rounding factor is not applied to expenses. This means that the amount will be booked as you have entered it in the expenses.
If, for example, you have entered a rounding factor of 0.05 (5 centime rounding) and enter an expense of Fr. 9.96, we will book exactly this amount of Fr. 9.96. This amount will not be rounded down to Fr. 9.95.

With "Fixed exchange rate" you define the exchange rate with which the conversion into the master currency is to take place.

 

Exchange rates

The exchange rate can always be stored in relation to the master currency. You define the master currency when you create your bexio account. As soon as you have entries in bexio (e.g. from invoices), the master currency can no longer be adjusted (unless there is not yet a single entry in the journal for all financial years).

To edit a currency and its exchange rate, click on the "three-point menu" on the right-hand side of the overview. Then select "Edit currency". The exchange rates are entered according to the following principle: 1 Euro corresponds to 1.05000 Swiss Francs, 1 Indian Rupee corresponds to 0.012 Swiss Francs, etc.

 

Delete currency

To delete a currency, click on the "three-point menu" on the right side of the overview. Then select "Delete currency".

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Foreign Currencies in Accounting

bexio keeps all your accounts in your local currency. This means that all entries in a foreign currency (e.g. invoices in euros) are converted into your local currency. All entries are displayed in your local currency across all your accounts. Entries are converted according to the exchange rate you enter.

Here is an example of how the automatic conversion works:

  • You create a product in CHF worth CHF 100.00
  • You create an invoice in EUR
  • You import the product into the invoice
  • The amount is converted according to the exchange rate you entered and automatically displayed in the invoice
  • We enter the value of the invoice in CHF (your local currency) directly into your accounts

For example, if you import a product in EUR based on an invoice in USD, we calculate as follows:

Product A: 100 EUR = 106.17 CHF (100 x 1.06170); Invoice A: 106.17 CHF = 103.61 USD (106.17/1.02470).

Warning! This means that all transactions in your accounts are always displayed in your local currency. (All accounts are kept in your local currency).

 

Currency gain or loss entries

If the currency exchange rate when paying an invoice is different from the rate that applied when the invoice was created, we automatically enter either a currency gain (selected revenue account from the document) or currency loss (selected expense account from the document) depending on the type of change.

You can find more information about foreign currencies in bexio here.

 


 

Foreign Currencies in Sales and Purchasing

In the sales and purchasing areas, you can choose the currency for each document. That means you can send the document in the desired currency to your customers, or display supplier invoices in the form you received them.

All entries in your accounts are converted into your local currency using the saved exchange rate. Please ensure that you enter the exchange rate used by the bank when you create, for example, a new payment receipt.

Warning! Regardless of the currency an invoice is created in, bexio always enters it into the accounts receivable account 1100 – “Sales from deliveries and services.” For that reason, it is not possible to keep different accounts receivable accounts for different currencies in bexio. The same goes for supplier invoices and the accounts payable account.

 


 

Foreign Currencies in Banking

You must choose a currency for every payment order. All foreign currencies included in bexio are supported. Please make sure that different foreign currencies are supported by your financial institutions and bank contracts. If not, a payment created in a foreign currency in bexio may not be accepted by your bank. Please always check the payment in your online banking.

When a payment order is created based on a supplier invoice, it must use the currency of the supplier invoice, including if it is a foreign currency.

For transaction matching, credits and debits can be processed in a foreign currency. When entering invoices, supplier invoices, or expenses, an exchange rate must be manually entered when you match payments if the currency of the document does not match the currency of the transaction (e.g. the invoice is in CHF and the payment is received in EUR).

If the currencies match (e.g. the invoice and payment receipt are both in EUR), all entries in your accounts will be converted into your local currency according to the saved exchange rate.

All customer account entries and manual entries are also converted into your local currency according to the saved exchange rate.

 


 

Foreign Currencies in Projects

You can specify the currency in which services and expenses should be calculated for each project. Any invoices from that project will automatically be created in the selected currency. However, the accounts for the project itself will always be kept in your local currency.

 


 

Foreign Currencies for Products

You can specify the currency in which purchase and sale prices should be displayed for each product you create. When you import a product into a document (e.g. an invoice or supplier invoice), the product will automatically be converted into the document’s currency using the exchange rate saved in the settings.

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