Exchange rate
In Arabic سعر الصرف
The price of one currency in another, used to convert a foreign-currency document into the currency the books are kept in.
In plain words
A distributor that buys or sells in another currency keeps the document in that currency and books it in its own, at the rate for the document’s date.
When the payment comes later at a different rate, the difference is a realised exchange gain or loss, posted separately from the sale or purchase itself.
The common mistake is booking a foreign document at one to one when nobody entered a rate. The books are then wrong by the whole exchange rate, and it is easy to miss.
- Invoice
- EUR 1,000
- Rate on the invoice date
- 4.10
- Booked
- SAR 4,100
- Paid at 4.05
- SAR 4,050
- Exchange loss
- SAR 50
In Axon Suite
How Axon Suite handles it
Each Axon Suite document carries its own currency and exchange rate, taken from the latest rate on or before its date unless one is typed. With no rate on file and none typed, the document is refused, never booked at one to one.
Feature
Documents in any currency
Each document carries its own currency and exchange rate. With no rate on file and none typed, the document is refused, never booked at one to one.
Open: Documents in any currency