How to enter foreign currency expenses

Most of my expenses are in USD.
I’d like to help my accountant as much as possible so I’d like to use the exchange rates from Revenue.
How should I enter the difference between the Revenue exchange rate and the actual amount that is on my bank statement?

1 answer

Peter Connor Staff August 7, 2015

The exchange rate is the rate of FX at the time of payment processing. That’s the rate you should use, the one defined by the bank. 
I’ve never heard of Revenue providing exchange rates, did your accountant suggest this to you?

Let me know,

  1. Yes, she did...
  2. Peter Connor August 7, 2015

    Let me put to that to our accounting team and I'll get back.

  3. Hi Pete, I was on the phone with Revenue today and they informed me that indeed there is one single exchange rate for the whole year and I have to use that for my accounts for all invoices in foreign currency.
    Here are the rates:

    These are the Average Market Mid-Closing Exchange Rates supplied by the Central Bank of Ireland.

    So again: I have expenses in USD or GBP that will be entered with the Revenue rate but won't match to my bank statement. How would I enter the gain or loss if it cannot be taken into account as expense?

    Thanks, Jozsef
  4. Hi Peter,
    Did you get any update on this? In the meantime I got the same information confirmed in the Revenue office in person. Thanks
  5. Peter Connor December 15, 2015
    Hi J,

    I'll ask now, don't know how I missed that.

    Match your FX with the rates the bank gave you. They're referencing you closing your accounts.

    The FX rates are set by the market not Revenue. Your bank account has to match your accounts.

    Just stick with the rate the bank gives you.

    Thanks Pete

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