Regarding multi currency

My base currency is AED
the exchange rate according to Manager software is 1USD= 3.6697AED
BUT i need 1USD = 3.67AED.

when I’m receiving money from Foreign USD customer to my local AED account, im giving the manual input as follows

but according to manager im receiving $16238.32 , but according to me i received $16237. that difference is shown in currency gain(loss)

Why manager is overriding my manual currency input?

how to solve this?

I had similar issue. 1 RSD = 108,5681 USD. When you divide these two, you receive 0.009210808699793. Earlier, I would make an entry in the Manager 0.0092 and I was receiving the same discrepancy as you. Then, I started entering the exchange rate with all 16 decimals (0.009210808699793) and Manager worked perfectly.

I hope this will help you.

@raj_nann, I don’t think Manager is overriding your manual input in USD. You entered $16,237 USD received from customer and that’s exactly what you should see credited to accounts receivable sales invoice. Where do you see $16,238.32 amount?

let me explain how this is happening with me…

Exchange rate i mostly use is 1USD =3.67AED bcz i get money from foreign customers to my AED account
i entered manual exchange rate of 1USD = 3.67AED ( If i dont give manager automatically considering 1USD = 3.669AED)

for example:
if i create a sales invoice for $100,000/- then i should receive AED 367,000/-… which should be perfect (no currency gain/loss)

in some cases if i pay from AED account to USD supplier then i need my exchange rate to be $1=AED3.674

when i create a purchase invoice of $100,00/- then i should spend AED 367,400/- (this i will fill on both the currency boxes in spend money filling form).

now Manager will consider that Extra AED -ve 400/- is added to currency gain/loss.

if there is a manual entry $100,000/- and AED 367,400/- which im entering manually on spend cash form then why manager wants to calculate about extra 400?

According to me it should not calculate that extra AED 400.
Manager should consider that new exchange rate is only for that particular transaction where there is no currency loss or gain.

if im thinking wrong someone please explain how its working and how i should solve this?

Let’s assume you have single transaction in your bank account and that is a receipt of $100,000 USD from customer.

$100,000 USD is from your point of view equivalent to 367,400 AED what you consider customer has paid.

However, based on your global exchange rate set under Settings tab, $100,00 USD should be actually worth only 367,000 AED.

400 AED is therefore your exchange currency loss.

can i simply give the exchange rate manually per sales/purchase invoice?
i dont want the exchange rates from setting tab to calculate it.
bcz the bank exchange rate are as follows
from AED to USD is 1USD = 3.674AED
but from USD to AED is 1 USD = 3.67AED

so if i take global exchange rate from settings tab it will keep showing me currency gain/loss which i never gain/loss in reality.
Hope you understood my problem. :smile:

as above mentioned are two different exchange rates from one single bank

which exchange rate i should enter it as global exchange rate in setting tab?

if i take 1usd = 3.67 AED then all sales invoice will be perfect with out currency gain/loss, BUT because of purchase invoices i will get the currency gain/ loss.

if i take 1usd = 3.674 AED then all PURCHASE invoice will be perfect with out currency gain/loss, BUT because of SALES invoices i will get the currency gain/ loss.

I don’t understand why you are trying to force the system not to report currency gains (losses).

Maintain your books by recording transactions as they are happening and let Manager figure out the rest. If you made currency gain (loss), so be it.

I mean, you are using multiple currencies in Manager. You have bank account denominated in currency other than your base currency. Currency gains & losses are expected to happen.

so, in my case which currency exchange rate i should use in settings tab.

foreign to local currency
local to foreign currency?

Under Settings tab, you should enter the average of those two because that is the true exchange rate. But in reality, banks have such a small spread that you can just enter any exchange rate they advertise.

ok got it

Thank you

i guess this is related here

according to me there should be two exchange rates in settings
1- to receive foreign currency
2- to spend foreign currency

because buying and selling price of USD is different in any country. in this way we cannot see currency gain or loss.

because in my case
1 USD = 3.67AED (receiving money from foreign company)
1 USD = 3.674AED (sending money to foreign company)

when we have separate exchange rates then we wont get currency gain/loss.

Generally exchnge ates will keep on fluctuating daily, but in UAE most of the time its same.
once users enter these two values as mentioned above in the exchange rates in settings menu

then while spending money if the bank gives different exchange rate at that point of transaction
Ex: 1USD= 3.675 AED , then that difference in rate 0.001AED will be calculated as currency loss.

Ex2: 1USD= 3.672 AED, then that difference in rate 0.002AED will be calculated as currency gain.

Same will be applied for receiving money

So, basically we need two exchange rates entries one for receiving money and other for spending money

that’s just my idea, i might be wrong. I’m not pro in accounting smile

You can set exchange rate on transaction level where applicable.

Exchange rates you set under Settings tab are for revaluation purposes. Typically you would enter there the average between buying/selling rate.

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What happens if I add another exchange rate for the same currency pair to Manager? Will all transaction from that date forward use the new rate?