Foreign currency accounts in the chart of accounts

The chart of accounts has 3 system accounts that keep track of realised and unrealised currency movements. If you are using multi-currency in your organisation, they are included in your chart of accounts by default. If you've added a foreign currency bank account, the account and balance will also display.

Foreign currency system accounts

Image showing the three foreign currency system accounts in the chart of accounts.

Bank revaluation account

  • Any transaction from a foreign currency bank account that has been revalued is automatically coded to this account. Transactions include spend and receive money, bank account transfers, sales invoices, bills and credit note refunds.
  • For foreign currency bank accounts, the bank revaluation account holds the total difference between what the funds in the account were worth on the day of payment compared with today's exchange rate.
  • There is no balance shown for this account but you can click Details to see the Foreign Currency Gains and Losses report.
  • You can't code anything to this account - it's used only to show currency movements in the Profit and Loss and other Xero reports.
  • Reported on the Cash Summary report.

Realised currency gains account

  • This account calculates the gains or losses recorded between the date that the invoice, bill or credit note was created and the date of payment.
  • Click on the balance to see the gain or loss amounts on invoices, bills and credit notes that make up the total realised amount.
  • This account can be used in manual journals and can be set to show in expense claims so you can use it while adding receipts (if required).
  • Reported on the Profit and Loss report and Executive Summary.

Unrealised currency gains account

  • This account calculates the unrealised gains or losses on unpaid invoices or bills, calculated at today's exchange rate.
  • There is no balance shown for this account but you can click Details to see the Foreign Currency Gains and Losses report.
  • You can't code anything to this account - it's used only to show currency movements in the Profit and Loss and other Xero reports.
  • Reported on the Profit and Loss report and Executive Summary.

Foreign currency bank accounts

Foreign currency bank accounts display the year to date balance in the currency of the bank account.

Click on the balance to see the transaction details for the bank account.

Bank bal