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Foreign currencies  – post exchange rate differences at the end of the reporting period

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.

You can find out more about foreign currencies in the following post: Foreign currencies in bexio

 

Overview


 

Evaluation at the end of the reporting period

At the end of the year, we recommend checking the bank account in the foreign currency to ensure that all postings correctly include the respective foreign currency postings. The easiest way to do this is via "Reports", "Account forms". You can sort the account by currency in the Excel export, and thus can very quickly find any incorrect postings without a corresponding currency code.

The valuation of the bank account at the end of the year can be recorded as an exchange rate gain or loss via manual postings. 

(Annual, monthly, quarterly or half-yearly financial statements)

The balance shown of € 4,410.00 must match the bank account (account reconciliation). A currency exchange rate of 1.10 is shown between the CHF balance and the EUR balance. At the end of the year, the CHF balance is revalued based on the euro balance. We recommend using the monthly average exchange rate. In this example, we are assuming a rate of 1.14.

Account form 1020 (bank)

kontenblatt_1020.png

This results in a new balance of € 4,410.00 x 1.14 = CHF 5,027.40, and leads to an exchange rate gain of CHF 176.40. The valuation of the bank account (in this case, an exchange rate gain) is posted via the manual posting screen with the following posting record:

Bank at exchange rate difference (exchange rate gain) CHF 176.40

kursgewinn_bank_1020.png

 


 

Customer account with holdings (balance = € 2,154.00)

In the annual financial statements, the CHF balance can be revalued based on the EUR balance. In this example, we assume a monthly average exchange rate of 1.14, analogous to the valuation of the bank account.

Note: In the customer account, not only are items from foreign currency invoices posted, but also items from CHF invoices (mixed currencies). A manual valuation should therefore be carried out with caution, because, when payment of an outstanding invoice is received, the system uses the exchange rate currently stored in the currency table and compares it with the exchange rate of the invoice.

Example: 

  • Invoice 30.09.x1 with exchange rate of € 1.10
  • Valuation 31.12.x1 with exchange rate of € 1.14 (manual posting)
  • Payment 28.02.x2 with exchange rate of € 1.16

The manual valuation has already corrected the holdings to a current € exchange rate of 1.14. When the payment is received, the system would post a further exchange rate gain of 0.06 (1.16 - 1.10). This process leads to practically a double posting of the currency difference within the period from 30.09.x1 to 28.02.x2, and must be neutralised by a counter entry.
Manually posted currency differences are not transferred to the A/R list.

Account form 1100 (accounts receivable)

kontenblatt_debitoren.png

 

This results in a new balance of € 2. 154.00 x 1.14 = CHF 2,455.55, and leads to an exchange rate loss of CHF 13.58. The exchange rate loss is posted via the manual posting screen with the following posting record:

Exchange rate difference to customer CHF 13.58

kontenblatt_debitoren_wa_hrungsverlust.png

 


 

 

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