Quickfile Foreign Currency Account Adjuster

Hi @QFMathew, just listened to your webinar about QuickFile and BrightPay which was good to know and very interesting, thank you. It led me to finding additional services and foreign currency adjuster add-on. I have now added the latter but there seems to be no other info or action to take so is this now totally automated and I do not need to do anything manually?

Hi @Jon_G

Thanks for coming along! :slight_smile:

The foreign currency adjuster is actually a community developed tool, made by @anthonywilliams.

In general, currency fluctuations are calculated on invoices when they’re raised and when payments are allocated. With bank accounts, it’s a bit more manual (which is where @anthonywilliams’ tool comes in).

As long as the bank accounts are re-valued on a regular basis (e.g. month end), this should be sufficient, especially if you don’t have many transactions.

Hope that helps, but if you have any more questions, just let us know

Thank you @QFMathew for you message.

When you say

‘as long as the bank accounts are re-valued on a regular basis (e.g. month end), this should be sufficient, especially if you don’t have many transactions’

How should I do this re-valuation?

Hi @Jon_G

You just need to make adjustments to record any difference with exchange rates:

This will keep the bank balance the same but will reflect the change in the Chart of Accounts to make the GBP value more accurate

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@QFMathew @QFBeth Thank you for your reply. Could you expand a little or is there a tutorial?

I’m a little confused because if that has to be done every month manually then what does the QuickFile Foreign Currency Account Adjuster tool do?

You said to create a journal via ‘Record currency loss/gain movement’ but at which rate - from XE? I need to look these up? For example, if EUR1000 was invoiced on 01 June and received on 15 June then what GBP amount is journaled on 30 June?

This isn’t something we can answer, unfortunately, as it’s a community developed tool. @anthonywilliams developed this tool, so he may be able to help further.

If you’re invoicing for it, no need to update it - QuickFile does this automatically. It’s just when you have funds sat in a non-GBP bank account. It’s mainly for things like your balance sheet report which displays the GBP figures.

Let’s say for example you have €500 in a EUR account on QuickFile. Today, this is worth £429.00 (I’ll keep to round figures to make it easy!). At the end of the month it could be worth £420.00 based on the xe.com rate. In this case, you would need to journal £9.00 to show the correct GBP value in your accounts.

But for invoices and payments, QuickFile automatically takes this into account for you. It’s just for funds in a bank account that it would need to be done.

You could even leave it until year end and raise it with your accountant.

I wrote the tool to handle year-end accounts, but you can run it monthly if you like.

All the tool does is apply a currency adjustment journal, as described in the “Journal out a currency loss/gain in a foreign bank account” section of Invoicing in foreign currencies by looking up the exchange rate on the relevant dates.

It ensures that the GBP figures shown in the Chart of Accounts and other reports matches the current GBP value of foreign currency accounts on the specified date.

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@anthonywilliams many kind thanks for your excellent explanation. I do have currency accounts so this will be a useful tool to use, thank you for developing it.

I am thinking that it might be easier to make the adjustments every time currency is converted to GBP, transferred from a currency bank account to the GBP bank account, rather than leaving them all to the month or year-end.

Quickfile will handle the currency adjustment automatically when you transfer money around: you can specify the exchange rate or the received amount as well as the sent amount.
You need to add the adjustment journals when foreign currency hasn’t been transferred for a while, so its value in GBP has changed, even though the value in the foreign currency hasn’t.

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