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Reconcile a foreign currency invoice paid in another foreign currency in Xero
Reconcile a foreign currency invoice paid in another foreign currency in Xero
Daniel Little avatar
Written by Daniel Little
Updated over a week ago

When reconciling transactions, either the statement line or transaction recorded in Xero must be in your base currency. If both the payment and transaction are in currencies other than your base currency, you need to reconcile these through a clearing account.

For example, if you sell on and receive SEK payouts converted into EUR you will need to use a clearing account in Xero for these invoices since the invoice will be in SEK and the bank statement line will be in EUR but your base currency is GBP.

Xero has a help article on this:

Please note : Amazon first estimate the amount that will be converted, then they tell us that amount. Sometimes between the time of them estimating the conversion and them actually completing it, the rate can change and therefore the amount showing in Link My Books can be the old rate.

If this happens then you'd need to check the actual conversion amount on Amazon directly and then use that to find the invoice to match to in Xero. When you select the settlement to match them, Xero will update the exchange rate automatically to make it correct as per the match πŸ‘Œ

I hope this helps but if you have any further questions then please let me know.

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