# Currency Issues Displaying Wrong in Profit and Loss **URL:** \ **Category:** Uncategorized\ **Created:** [March 2, 2017, 12:34pm UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765 "2017-03-02T12:34:43Z")\ **Posts on this page:** 9\ **Page:** 2
**Author:** ![SaiKiranch](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/saikiranch/32/6688_2.png) [@SaiKiranch](https://forum.manager.io/u/SaiKiranch)\ **Post date:** [January 14, 2021, 11:11am UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/21 "2021-01-14T11:11:36Z")
![image](https://us1.discourse-cdn.com/flex019/uploads/manager1/original/3X/7/7/77fda2660056a6559d9173bac0371ef7fe01ef10.png) There is discrepancy, while the Income(AED) and Expenses(USD) are in different currencies Profit Loss, is shown as per Income currency. ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [January 14, 2021, 11:40am UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/22 "2021-01-14T11:40:40Z")
The Profit & Loss is always shown in your base currency. Any sales or expenses in the foreign currency are translated into your base currency using the exchange rates you entered What is your base currency? What exchange rates have you entered? Presumably, you have entered the sales and expenses using the correct currency designation on the sales invoices and purchase invoices? ---
**Author:** ![SaiKiranch](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/saikiranch/32/6688_2.png) [@SaiKiranch](https://forum.manager.io/u/SaiKiranch)\ **Post date:** [January 14, 2021, 11:55am UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/23 "2021-01-14T11:55:56Z")
Base Currency is AED. When we are creating payments we are entering the corresponding amount in base currency as per the transaction. ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [January 14, 2021, 11:59am UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/24 "2021-01-14T11:59:11Z")
Are you using purchase invoices or are you just entering the payments without any invoice? Show an edit screen of the transaction ---
**Author:** ![SaiKiranch](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/saikiranch/32/6688_2.png) [@SaiKiranch](https://forum.manager.io/u/SaiKiranch)\ **Post date:** [January 14, 2021, 12:20pm UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/25 "2021-01-14T12:20:22Z")
We are using purchase invoices and then creating payments. Purchase Invoice. ![image](https://us1.discourse-cdn.com/flex019/uploads/manager1/original/3X/4/1/415e21e74e042b33b12f19fa7718cc8685e6d4a7.png) Payment Voucher example PV-21-010 ![image](https://us1.discourse-cdn.com/flex019/uploads/manager1/original/3X/a/4/a40a426072bc3cd259448c962093d7a4bb47f6a7.png) ---
**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\ **Post date:** [January 14, 2021, 1:19pm UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/26 "2021-01-14T13:19:34Z")
The expenses in the P & L are from the purchase invoice. Have you created an Exchange Rate for AED / USD for whatever date of the invoice is? It looks like you have not entered any exchange rate so Manager has defaulted to 1 AED = 1 USD The exhange rates are in Settings / Exchange Rate The values on your payment transactions are not used to calculate the exchange rate ---
**Author:** ![SaiKiranch](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/saikiranch/32/6688_2.png) [@SaiKiranch](https://forum.manager.io/u/SaiKiranch)\ **Post date:** [January 16, 2021, 5:56am UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/27 "2021-01-16T05:56:11Z")
Thanks, got it. I was under the impression the Exchange rate is automatically calculated based on this. ![image](https://us1.discourse-cdn.com/flex019/uploads/manager1/original/3X/f/8/f8c3786e339a693f654e5c279cdf9e8d9c0a510f.png) That would be better if it is automatically taken as per transaction entry. ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [January 16, 2021, 1:54pm UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/28 "2021-01-16T13:54:45Z")
The equivalent foreign currency amount available on some transactions only tells the program to consider payment in one currency as full satisfaction of the obligation in another. That way, a purchase order can be shown as being paid in full despite later exchange rate fluctuations. Changes in exchange rates result in automatic adjustments in the _Foreign exchange gains/losses_ account rather than in _Accounts payable_. ---
**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\ **Post date:** [January 18, 2023, 3:28pm UTC](https://forum.manager.io/t/currency-issues-displaying-wrong-in-profit-and-loss/8765/29 "2023-01-18T15:28:04Z")
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