Currently, the latest exchange rate is taken to calculate the balance between different currencies. The problem is that we are using FIFO method.
Is there any way I can apply FIFO method due to exchange rate? Thanks.
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In my opinion it’ll better if Currency gains (losses) method will be somehow manual and not automatic methodology.
Yeah, it makes me headache; but we can’t omit that currency part only and will not get accurate data. 
Frankly, I’ve never heard of FIFO method in relation to exchange rates or currency valuation. What it is?
@Giora, I think the issue is that Manager doesn’t have a report to explain how did it calculate those exchange gains / losses. I’m working on it. That way you will be able to examine what’s going on with each entry. If you think some amount is way off, the report will give you an answer how did it come to that amount.
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Automatic algorithm details required, it can be default mode but In my opinion manual option overriding manager calculations is necessary.
FIFO Method means FIRST IN, FIRST OUT.
For example, We received 10 USD with exchange rate of 1000 MMK on 1st April, 2015. Next day, we received 10 USD with exchange rate of 900 MMK. On 2nd April, we spent 15 USD. Here the calculation of FIFO method. We calculate first 10 USD with 1000 MMK and latter 5 USD with 900 MMK.
Currently in Manager, only the last updated exchange rate is used to calculate the balance. That way, we can’t get the exact valuation. According to my accounting experience, FIFO is the best method.
Hope we can get FIFO method integrated soon. 
Thanks.
FIFO makes no sense to me in the context of exchange rates for at least two reasons:
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Whenever you hold cash, its value is represented in the currency in which you hold it, not the exchange rate that applied when you received it. Even in a single-currency implementation of Manager (or any other accounting package, for that matter), the underlying worth of your cash against some external standard may go up or down. But its accounting value is fixed.
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When you engage in a transaction that involves currency exchange, the exchange rate is constant for the entire transaction. You may have small gains or losses due to timing of various aspects of the transaction, that is, receiving an invoice, sending a payment, depositing the payment, etc. But whichever rate applies to any portion of the complete transaction applies to the entire amount involved. The fact that you might have received funds that were formerly exchanged at different rates makes no difference.
I totally disagree with this suggestion. To calculate the gains and losses on currencies, historical exchange rates don’t matter. It is the current exchange rate that will be used.
If a transaction happened (maybe with a customer or supplier who deals in a currency other than your base currency) the gains and losses computation will use the current exchange rate as against the exchange rates on the day the transaction happened to compute the gains or losses, manager is doing that already.
Ok then, what will happen to the trial balance? We won’t get balanced tri with the current exchange rate.
Thanks.
Exchange rate gains or losses are recognised in the Profit and loss statement so the trial balance will always balance. You may as well post a picture to further explain your problem maybe i am misunderstanding you
Hi Aspire,
I had a question.
As per IFRS, is it obligatory to adjust FIFO exchange rate by Central Bank exchange rate at the end of each month?
@Arafat_Mahmood, what you do or do not do to comply with IFRS has nothing to do with Manager. Manager is just a means to record what you do. And if you read the previous posts in this thread, you will see a lot of discussion explaining why FIFO makes no sense in the context of exchange rates.
I’m not an accountant, but if I understand it correctly, Australian Taxation Office does require us to apply FIFO for foreign currencies:
Citing the key paragraph:
In order to allocate a cost base or value to a particular unit of foreign currency, or a fungible right or part of a right to receive or pay foreign currency, a first-in first-out (‘FIFO’) ordering rule is normally applied to the units of foreign currency in the account
Consider this example FIFO vs LIFO
BUY USD $10 at 1.5 AUD
USD Balance = 10 USD
AUD Balance = -15 AUD
BUY USD $10 at 1.6 AUD
USD Balance = 20 USD
AUD Balance = - 31 AUD
SELL USD $10 at 1.7 AUD
...
Option A. FIFO (first in first out)
Bought 10 USD at 15 AUD, then sold at 17 AUD
Currency exchange gain = 2 AUD
Option B. FILO (first in last out)
Bought 10 USD at 16 AUD, then sold at 17 AUD
Currency exchange gain = 1 AUD
Option A (FIFO) vs Option B (LIFO) demonstrates how Currency Exchange Gain is different:
2 AUD (FIFO) vs 1 AUD (LIFO)
That’s how I understand gain/loss calculation.
Doing business in Australia, I need to apply FIFO to my multi-currency transactions. So, at the end of the day, is there any way to make Manager use one approach or the other when calculating gain/loss?
Note that my example above is calculating realized gain/loss.
It looks like Manager does calculate unrealized gain/loss correctly though (I double-checked by calculating manually).