Understanding gains and losses in foreign currency transactions

Each time an invoice, bill or credit note is entered in a foreign currency, gains or losses are recorded on the transaction. This is due to currency movements between the time you entered the transaction and the time payment or refund was made. Only Adviser and Standard users can view gains and losses in foreign currency transactions.

About gains and losses in foreign currency transactions

  • Depending on the status of the transaction, the gain or loss will either be realised or unrealised.
  • Gains and losses don't appear on bank account transactions, they are only visible on invoices, bills or credit notes.
  • Gain or loss information doesn't show on unapproved items, items that have been deleted or voided, or items in your base currency.
  • Each time you approve an invoice, bill or credit note that is entered in a foreign currency, gains or losses are recorded on the transaction that reflect the exchange rate changing over time.
  • If you make a partial payment or partially refund an invoice, bill or credit note, a gain or loss is calculated using the exchange rate the day the payment was made. The total net gain or loss will be the combined total of these partial payments or refunds.

Transaction details

The following information is shown on foreign currency invoices, bills and credit notes.

Exchange rate – The original exchange rate on the date of the invoice, bill or credit note.

Gains or losses – A gain shows as a green arrow, and a loss shows as a red arrow. The figures are in your base currency.

Unrealised gain or loss – When invoices, bills or credit notes are awaiting payment, an unrealised gain or loss figure will display. It shows the difference between what the invoice, bill or credit note is worth at today's exchange rate compared to the exchange rate that was applied when the transaction was raised.

Image showing an unpaid invoice with an unrealised loss of NZD$0.26.

Realised gain or loss – When invoices, bills or credit notes are paid, a realised gain or loss figure displays showing the actual amount gained or lost on the invoice or bill due to the change in the exchange rate by the time the payment or refund was made.

Image showing a paid invoice with a realised loss of NZD$1.86.

Net – The net figure displays the amount actually gained or lost on the bill or invoice - it will be the same as the realised or unrealised amount depending on whether the invoice or bill has been paid, or will show you the difference between the two if the invoice, bill or credit note has been partly paid.

A credit note in a foreign currency applied to an invoice or bill will also show a gain or loss figure on the credit note if the exchange rate is different on the two items.