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Foreign currencies in bexio

Can foreign currencies be used in bexio? Yes, because it's possible to record a foreign currency and an exchange rate. The account form reports each show the foreign currency with the final balance. Realised exchange rate gains and losses are posted correctly when the payment is made. Unrealised exchange rate gains and losses need to be posted manually. Posting a pure base currency is also permitted in banks in a foreign currency. It is therefore important that the posting is correct and that the foreign currency is not forgotten. If the bank account is connected via banking, the correct posting is automatically carried out in the foreign currency in question. The exchange rates can be stored manually in an exchange rate table or changed, depending on the module, when the posting is made.

This ability to handle foreign currency postings flexibly also allows income accounts to be evaluated with foreign currencies (in all their variety). Interesting key figures on foreign currency risks can thus also be evaluated, and it is possible to quickly and efficiently check whether exchange rates are being used correctly (especially with regard to VAT). 

Foreign exchange rate table settings

The foreign currency master data can be found under "Settings" -> "All Settings" -> "Functions & Modules" -> "Currencies", and the associated rates can be found under "Settings" -> "All Settings" -> "Functions & Modules" - > "Currency Exchange Rates". 

The master "Currency" data requires the 3-digit ISO code (CHF, EUR, USD, GBP, THB, etc.). This also means that only the standard currencies that have an ISO code can be recorded. The exchange rates that are calculated in the dimension 1:100 must be worked out and converted accordingly, since there is only one exchange rate field, which does not specify the dimension (1:1 is standard for all currencies). 

 

Currency exchange rate

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Invoicing/settings

In the case of companies liable to pay tax, the use of the correct exchange rate is very important. The currency exchange rate that corresponds to the invoice date must therefore be checked or adjusted in the settings. You can find this under "Settings" -> "All Settings" -> "Functions & Modules" -> "Currency Rates".

In most cases, the monthly average rate published by the Swiss Federal Tax Administration (FTA) is sufficient. This exchange rate is always published by the FTA  on the 25th of the month, or the first working day following this, always with respect to the following month. Example: On 25th May, the monthly average exchange rate for the month of June is published.

The current monthly average exchange rate can be found on the website of the FTA under the following link: FTA monthly average exchange rate

The receipt is now issued in the relevant foreign currency. The incoming payment is made to the foreign currency bank account that has been set. The exchange rate and the associated foreign currency bank account can be selected in the invoice settings.

 

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Receipt of payment

The customer's payment is made to the foreign currency account recorded on the invoice. The bank posts the amount received in the specified foreign currency. The incoming payment is posted either in banking or via the manual incoming payment.

When the payment in foreign currency is posted in the sub-ledger, bexio automatically posts exchange rate gains or losses if the calculated base currency invoice amount does not match the calculated base currency payment amount. This posting primarily balances the customer collective account (debit/credit) in the base currency (which, in most cases, is CHF). When the exchange rate gains and losses are automatically posted, all discounts, partial payments, etc., are then correctly taken into account in a thorough calculation of all posting options.

Example – invoicing/incoming payments in euros

Customer account cleared, holdings of Euro = 0, no valuation necessary

Account form 1100 (accounts receivable)

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Example of posting the balance carried forward in the foreign currency

The balance carried forward is always only in the standard currency. To ensure that you also have the balance carried forward in foreign currency in the bank, we recommend that you post it manually via the transfer account, whereby you first clear the balance carried forward of the base currency, and then post it again with the base currency in accordance with the final balance sheet and the foreign currency amount.

The transfer account (e.g., 1090) thus tallies to zero in the base currency, and you have the correct balance carried forward in the foreign currency. The balances are always shown in the balance sheet in the base currency. Postings are carried out via the manual posting screen. The result then looks like this:

 

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