Foreign currency & reporting
Multi-currency reports show your organisation's exposure to foreign currency exchange rates, calculated in real time using today's exchange rate. The value of payments made or payments outstanding and funds in foreign currency bank accounts changes each day as the exchange rate changes. These gains or losses are captured by Xero and reported through the standard reports, and in 3 foreign currency-specific reports.
How do reports display currency movements?
Any reports may contain revalued or foreign currency amounts, and if not those reports themselves, specific transactional reports that you can drill down into. The following describes how foreign currency elements are displayed across all reports. There are 3 reports for the specific reporting of foreign currency movements, otherwise foreign currency amounts are just gathered up in the standard Xero reports.
- Reports are always shown in your base currency by default. This is determined by the country where you file your taxes.
- You can only make a blanket change to view a report in another currency in the case of the Profit and Loss report, Budget Variance and Balance Sheet. Some offer the option to view transactions in their own currency on a report but the overall balances and totals will always be in your base currency.
- Figures on a report that have already been coded to an account and converted to your base currency at the time the transaction was entered are static and always in your base currency - you can drill down into the figures to reach the transaction to view it in its original currency. For example, the 'Sales' account on the Profit and Loss report.
Any figure on a report that has been revalued will display in your base currency and will show the exchange rate and original currency amounts and rates by way of a footnote. These are realised or unrealised amounts on sales invoices or bills to take account of the differences in value as the exchange rate changes. For example, the 'Accounts Receivable' account on the Balance Sheet.
The exchange rate used to recalculate foreign currency amounts to the base currency will be shown at the bottom of the report in the 'Notes' section and will be the current exchange rate for today - whether this is the hourly XE.com rate or one you have entered. The rate will change if you run the report for a different date in the past e.g. if the report date or report 'To' date is as at the last day of the previous month, that rate will be used.
- If you're running a report for the current month, and the end date of the report is the end of this month, no rate will be available and the report will use the current rate.
You can change the rate for the end day of the report if you don't want to use the rate provided, however if that date is in the future you'll likely need to update the rate again once that date is reached.
- Exchange rates in Xero are updated every hour of every day so depending on the specific date you want the report to be current to, you might like to run the final version of a report the day after the end date of the report so that you use the final 'rate of the day' on that report. If a report has a large volume or large value against unrealised gains or bank revaluation the report totals could be quite different at different times of the day depending on the change in exchange rates.
- Some transactional reports allow you to view the report using the original currency of each transaction - and this will be offered to you by way of a checkbox or drop-down list of currencies. Reports are always in the base currency and include all transactions by default so you'll have to specifically choose one of these options, for example:
'Turn off' the base currency default to view sales invoices in their original currency on the Account Transactions report
- Choose to view transactions of all currencies or just those in a particular currency on the Inventory Item Sales report or the Inventory Item Transactions report.
Some cash-based reports where a foreign currency gain or loss has been made on a foreign currency bank account will display this gain/loss or revalued balances as an extra column on the report (e.g. Bank Summary report) or specific entry in the report (e.g. Executive Summary or Account Transactions report)
- Reports exported to to Excel, Google Sheets or PDF display what is on screen so will include the same figures and notes where these are present.
Reports displayed in another currency
There are 3 reports in Xero that can be displayed in another currency:
All other reports are only displayed in your base currency but may contain revalued or foreign currency amounts.
There are an additional 3 reports available if reporting foreign currency movements, otherwise foreign currency amounts are just gathered up in the standard Xero reports.
Display the report in another currency
- The Profit and Loss report, Budget Variance and Balance Sheet display in your base currency by default.
Click More options in these reports to display the Currency field where you can choose from any of the other currencies you've set up for your organisation.
- On the Profit and Loss report and Budget Variance report, the 'More Options' link is not displayed on the default Common Formats tab, find it on the Compare Periods or Show Date Range tabs.
- All figures including the budget figures if displayed are converted to the chosen currency.
- Figures are converted as at the date at the end of each period being reported. This will vary depending on the report you're viewing and what period you've chosen to report e.g. the Profit and Loss report can be broken into periods of weeks or months, Balance Sheet into years.
- The exchange rates used for conversion to the chosen currency and the source and date of the rates chosen will be displayed as footnotes on the report.
- Where a period is not yet complete the exchange rate used will be today's rate rather than the end of a period e.g. if you're viewing balances as at today which is part way through a month or YTD balances.
Foreign currency reports
While you can see foreign currency transactions in your normal financial reports in Xero, there are 3 reports that specifically report on your foreign currency exposure:
Foreign Currency Gains and Losses Report - shows your Accounts Payable (bills), Accounts Receivable (sales invoices) and bank accounts revalued in your base currency and shows your organisation's total foreign currency exposure for each currency. This report is accessible from All Reports under Accounting.
- Realised Gains and Losses Report - detail behind the realised gains totals on the Foreign Currency Gains and Losses Report showing the gain or loss made on each transaction. Access this report by drilling down through the Foreign Currency Gains and Losses Report.
- Unrealised Gains and Losses Report - detail behind the unrealised gains totals on the Foreign Currency Gains and Losses Report showing the current value of the gains or losses on the currently outstanding sales invoices or bills. Access this report by drilling down through the Foreign Currency Gains and Losses Report.