Reconciling foreign currency settlements in Xero depends on whether you utilise Amazon's Currency Conversion Service (ACCS) or if you receive payouts directly in the foreign currency. This article will guide you through the reconciliation process for both scenarios.
Scenario 1: Using Amazon Currency Conversion Service (ACCS)
If your designated deposit account in Amazon is in your home currency (e.g., GBP) for all funds, including those originating in EUR, USD, or CAD, then Amazon's Currency Conversion Service (ACCS) will automatically convert these payments into your home currency before disbursing them to you.
How Link My Books Helps: When using ACCS, Link My Books helps simplify reconciliation by including the original currency amount and the converted home currency amount directly in the Xero invoice/journal reference.
Example Reference: (€5.79) LMB-FR-1012345678-1 (converted to GBP 4.88)
This format makes it much easier to identify and match the foreign currency settlement to your home currency bank statement line in Xero.
Steps to Reconcile in Xero (Using ACCS):
Go to the 'Match' tab: In Xero, navigate to your bank reconciliation screen and click the 'Match' tab for the relevant bank account.
Adjust Filters: Un-tick the "Show GBP items only" checkbox. This ensures Xero searches across all currencies for potential matches.
Search by Reference: Copy the exact amount you received in your home currency (e.g., GBP) from your bank statement, and paste it into the "Search by name or reference" box.
Initiate Search: Click "Go" or press Enter.
Select & Reconcile: Xero will display the invoices which have that specific figure in their reference. Tick the corresponding invoice/journal entry that matches your bank line, and then click "Reconcile".
Scenario 2: Receiving Payouts in Local Foreign Currency
If you have designated local bank accounts for each different currency that Amazon operates in (e.g., a EUR bank account for Amazon.de settlements, a USD account for Amazon.com), Amazon will pay you directly in those foreign currencies without prior conversion to your home currency (e.g., GBP).
Reconciliation in Xero (Local Foreign Currency): In this scenario, Link My Books will post the settlement to your Xero account in the original foreign currency. You will then reconcile the foreign currency payout in your dedicated foreign currency bank account within Xero, following standard multi-currency reconciliation procedures for that specific currency account.
Troubleshooting: No Matching Settlements Found
If your search in Xero provides no matching settlements, here are a few things to check:
Settlements Not Sent: Verify that all relevant settlements have been successfully sent from Link My Books to Xero. Check your Link My Books dashboard for any pending or failed settlements.
Amazon Currency Exchange Rate Updates: Amazon initially provides an estimated exchange rate when a payout is generated. The final, confirmed exchange rate is provided later once the payout has been completed. If you don't find a match immediately, it's possible Link My Books received the estimated figure first. We automatically update the invoice/journal reference in Xero once Amazon provides the confirmed rate. If this is the case, waiting a few days for Amazon to finalise the exchange rate may result in a match appearing.
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].