Exchange Rates and Bank Reconciliation

Exchange Rates and Bank Reconciliation

Hello, could you help me with this question please? When I create a Sterling bill item, it asks for the exchange rate. When I input it (as well as the sterling rate) the resulting calculation is lower than the amount I paid. E.g. I paid 1200 GBP at a rate of .839756 but after review it says total paid from bank €1,007.71

It should be dividing the 1200 by that rate – right?

I always have this problem inputting foreign exchange so I tend to fiddle around with the rate till what I get matches the amount coming out of the account. Clearly sterling 1200 at .83 rate will be a higher amount than 1200.

1 answer

Peter Connor Staff August 24, 2016

Hi Lou,
If the bank are saying the rate is .839756, they’re saying every .839756 GBP is 1 euro (they kind of give a backwards rate – the EURO to GBP rate).  
What bullet expects is the GBP to EURO rate (the opposite).  You can divide 1 by .839756 to get 1.190822. If you input the 1.190822 rate, it will give you a higher value.  
Also note that the bank may have made an extra charge separate from the rate that they gave you.


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