RE: Xignite exchange rates

Hi,

I have two questions around FX rates.

Reuters feed vs. Xignite

We’re currently using the Reuters feed for our exchange rates. However when using Reuters we see differences when we first calculate amount X with AUD/EUR but when we do the calculation the other way around it will give differences.

Anybody have any experience with Xignite? Will using Xignite gives us the possibility:

  • That the AUD/EUR rate will be the reciprocal of EUR/AUD?
  • Any experiences with changing from one to the other?

Average rates

Is it possible to load average rates? The average rate calculation can be misleading especially when you book large amounts mostly on the last day of the month.

Thank you in advance!

Thijs

Thijs Rookie Asked on December 17, 2019 in Accounting.
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1 Answers

Exchange rates are not reciprocal in reality. It is normal for AUD/EUR not to match EUR/AUD.

For Average Rates, are you talking about Consolidated rates? If so they can be manually set, yes, though I do not recall if they can be CSV imported.

Advanced Answered on December 17, 2019.

Hi Olivier, Thank you very much for your reply, we really struggle with this one!  

To give a little bit more background the reason why we want them to be equal is because by far most of our transactions are just between our own entities. I do understand that if you would exercise this on the open market you will get differences.

Due to the differences we encounter some differences with for example the following: Mother company in EUR has a loan to daughter company (in CHF) for 1000 CHF with exchange rates (EUR/CHF 1.1) & (CHF/EUR 0.8) I exaggerate to make the differences spot easily In the mother you will see EUR 909 In the daughter you will see CHF 1000 which is the equivalent of EUR 800 Consolidated you will have a difference of EUR 109 which you off course want to avoid.  

The average rates are indeed the consolidated Exchange Rates Thank you!

on December 18, 2019.
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