Foreign currency account using wrong exchange rate?

Hello,

I have set up a foreign currency account in Moroccan Dirham and things seemed to be working fine until today. I originally tagged each entry individually so that I could match the transfers from the GBP accounts and it seemed to work. Now the nominal ledger for the foreign currency account is showing far too much money in it in GBP although the numbers in the actual bank account are still accurate and tagged properly (I believe). Can you help?

I see an account denominated in MAD with 5 transactions in there. All the multiples look correct, the exchange rate for each transaction is between 12.7997 and 14.0629.

It looks about right when checking the exchange rate on Google:

OK. Thanks. I have just figured it out - I didn’t include the exchange charges separately so that was why I was getting the wrong figures in pounds in the ledger. Does this mean that it uses the exchange rate on the date input, not just the current exchange rate?

Excellent!

Quick File will use the exchange rate for the date of the transaction rather than the date of entry. We store historic rates going as far back as December 2011, the rates are sourced from XE.com.

Ok. Great. That’s good to know. Thanks.

Sorry to bother you again, I have raised an invoice on 22/03/2012 in moroccan dirham and it is showing todays exchange rate on it. The invoice is shown as paid on the same date, but there has been a currency adjustment charge made to my creditors control account which I can’t get rid of as it shouldn’t be there as far as I can see. Is this a problem with the system or have I done something wrong? The invoice number is QF00184. The payment has the correct exchange rate for the day, but the invoice seems to have todays rate which is the problem. Thanks.

It looks like you changed the exchange rate on the invoice as the actual rate on the system according to xe.com for the 22nd March 2012 is 13.3966, however it looks like you changed this to 14.0289. What then happened is the invoice was created at the 14.0289 but the payment was created at the 13.3966 rate creating a currency variation.

If you change the rate on the invoice to 13.3966 it should cancel out the loss/gain.