All Collections
Link My Books for Amazon
Troubleshooting Errors
How to reconcile SEK & PLN settlements in Xero
How to reconcile SEK & PLN settlements in Xero

What to do when you receive SEK or PLN settlements in Euros when your home currency is GBP

Rachel Jones avatar
Written by Rachel Jones
Updated over a week ago

There is a limitation within Xero & QuickBooks that doesn't allow you to match foreign currency invoices or bills to a 3rd foreign currency.
SEK and PLN settlements are being converted by Amazon into EUR but then your home currency is in GBP, that's where the issue occurs.

Your EUR account can only match against entries in EUR.

Since these settlements are sent over in SEK/PLN they cannot be matched with anything other than SEK/PLN bank accounts or your home currency GBP bank accounts.

Long term, if possible you should instead use your GBP account for SEK/PLN payments or set up a SEK/PLN bank account (using something like Wise) to receive your SEK/PLN funds into.

Short term, one option we have seen others take in the same situation is to set up a clearing account in SEK or PLN in Xero to overcome this issue.

IMPORTANT - We recommend that you seek advice from your accountant before actioning the steps below.

Create a suspense account within your Chart of Accounts

Within Xero you want to go to the Accounting menu within the top menu and select Advanced Accounting

You will need to select Chart of accounts

Then Add Account

Finally create a new current asset account. Make sure you enable payments to this account via the tick box

Allocate the bank receipt to the Suspense account

Create a credit note

You will need to create a credit note in the same currency as the invoice to clear the invoice from the Aged Receivables balance.

You can see in the example below that the invoice we are trying to match against is in PLN.

Create credit note with the same date, same currency and same amount as the invoice you are matching against.

(You may want to include a narrative about moving the balance to a suspense account for an audit trial)

The credit note will need to be allocated to the Suspense account to match against the receipt that was earlier allocated there.

Match the credit note against the invoice

Once the credit note has been approved you can allocate the balance against the original invoice

Create journal to clear the suspense account

IMPORTANT - Manual journals are usually recommended for accountant/bookkeepers and those that are experienced at managing the general ledger. You may not have the option to post a manual journal within your user settings.

Once the credit note and payment have been allocated to the suspense account there will be a small difference - this will be a foreign exchange gain/loss that is to be realised.

In this example there is a 29p difference sat on the balance sheet

To clear that from the balance sheet you need to create a manual journal.

You can see below that the accounting entry is



Currency Gain/Loss

(Profit & Loss)


Suspense Account

(Balance Sheet)


(If the balance was a negative amount within Current Assets the balance would be a liability and the journal would be the other way around)

Check the Suspense account balances off to nil

Here you can see that the suspense account has balanced off to nil. You can see the credit note that was posted (dated the original invoice date), the receipt received and the currency gain/loss.

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].

Did this answer your question?