Wrong curency exchange rate

[Alessandro_Manganell]

Hi,
I have a problem with the exchane rate (gbp-euro) of the following purchases:

• date 05/03/2019 amount: 2,050.00 euro
• date 20/02/2019 amount 4,000.00 euro.

the exhange rates, provided by quickfile for the aforementioned dates, are:

• 1.1624
• 1.1516

based on xe.com, instead, the exchange rate gbp-euro are the following:

• 1.1630
• 1.1505

I have many other purcaheses like these (foreign currency) and currently I’m audited by hmrc.
They want to know why the exchange rates used are different from the official exchange rate.

Could you help me?

[QFMathew]

Hi @Alessandro_Manganell

All the exchange rates are taken from the daily XE.com rate. This is applied consistently across all invoices and payments, although it is editable by the user (e.g. where the bank has used a different rate).

[Alessandro_Manganell]

Hi @QFMathew,

thanks for your answer.

probably I’ve found that the exchange rate used by quickfile (based on xe.com) matches with the closing exchange rate of the previous day.

Is that possible?

[QFMathew]

The two values you quoted above from XE.com are from the live mid-market rates. The rate we show and use is retrieved in the early hours and saved for that day. So it’s likely there’s going to be a minor difference compared to the mid-market rate.

I hope that helps?

Edit
For clarity - the rates used are daily spot rates. There’s more information on this here:

Xe.com historical rates are different then those in quickfile

We take a spot rate from xe.com for the day in the early hours (around 3:00 am GMT), this may not be the same as the daily average which is what xe.com will calculate at the close of each day, however it shouldn’t be wildly different.

[Alessandro_Manganell]

Yes, thank you for clarification,
I will explain this to the Hmrc inspector.

[ian_roberts]

The issue is that QuickFile needs a rate for each day that can be used for invoices created during that day, before the daily average is known at the end of the day. It also needs to use the same rate for all invoices with the same date otherwise you end up with different GBP values for the same sale depending whether it was created on the day or created later and backdated. So the only reasonable compromise is to use the start-of-day rate everywhere.

[Alessandro_Manganell]

thanks for your clarifiction. You are right!