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How to reconcile foreign currency settlements
How to reconcile foreign currency settlements

Reconciling EUR USD or CAD settlements to GBP amounts

Daniel Little avatar
Written by Daniel Little
Updated over a week ago

Reconciling foreign currency settlements against their local currency amounts in Xero differs depending on whether you use Amazon currency conversion tool or not.

If you have entered your GBP bank account as the deposit account for all your Amazon funds, including those in EUR, USD and CAD, then Amazon will use their Amazon Currency Conversion platform to convert your EU, USD or CAD payments into GBP before they pay them out to you.

If you have added local bank accounts for each of the different currencies that Amazon uses then they will pay you out in those currencies without first converting them to GBP.

If you are using the Amazon Currency Conversion platform then when your settlements are sent to Xero we will add their converted amounts to the invoice references like this:

"(€5.79) LMB-FR-1012345678-1 (converted to GBP 4.88)"

This makes it easier to find and match the foreign currency settlements with their GBP bank lines.

To do so if you take the amount you received in GBP and simply search for that value in the reference search box and untick the show GBP items only box, then Xero will show the invoices which have that figure in the reference which should make it much easier to identify them.

The steps are:

  1. Click the "Match" tab

  2. Un-tick the "Show GBP items only" checkbox

  3. Copy the amount you received in GBP and paste it into the "Search by name or reference" box

  4. Click "Go"

  5. Tick the invoice and hit reconcile.

What if there are no invoices that match?

If your search provides no matching settlements there are a few things that can be:

Settlements not sent

Check on Link My Books to ensure that all settlements have been sent to Xero.

Amazon currency exchange rate updated

When Amazon convert your foreign currency payouts into your home currency they first estimate the exchange rate when the payout is generated then later they confirm it once the payout has been completed.

This means that sometimes the figure they pass to us is the estimated figure and then it is later updated. When we receive an updated figure we update the invoice reference in Xero too. This means that whilst initially, you may find no match, if you wait a few days until Amazon update the exchange rate they used for the payout, then you may well find a match.

If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].

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