Zoomed Image
USA
800 691 9120
UK
01225 704844

How to Set Up Exchange Rates for Multi-Currency Assets

xAssets Fixed Asset Management User Guide
How To

How to Set Up Exchange Rates for Multi-Currency Assets

This page explains how to set up currencies and manage exchange rates in xAssets. Every financial amount has an associated currency code. Even single-currency organisations need to define their home currency.

Before You Begin

  • Ensure you are in the Fixed Asset Management profile.
  • Your home currency should be defined in Admin > Settings before configuring exchange rates.
  • For multi-currency environments, have a list of all currencies you need and their current exchange rates.
  • Use ISO 4217 currency codes (USD, GBP, EUR, etc.) for compatibility with the automatic exchange rate import feature.

Step-by-Step Procedure

Step 1: Verify Your Home Currency

  1. Navigate to Admin > Settings.
  2. Confirm the home currency is correctly defined.
  3. Navigate to Financial > Depreciation Setup > Currencies and Exchange Rates.
  4. Verify that your home currency exists in the list and has an exchange rate of exactly 1. If not, create or correct it.

Warning: If your home currency does not have an exchange rate of 1, all financial calculations and reports will produce incorrect values.

Step 2: Create Additional Currencies

For each foreign currency you need:

  1. Navigate to the Currencies and Exchange Rates screen.
  2. Click New or use the Add Currency menu option.
  3. Enter the Currency Code using the ISO 4217 standard (e.g. USD, EUR, JPY).
  4. Enter the Currency Name (e.g. "US Dollar", "Euro").
  5. Click Save.

Step 3: Add Exchange Rates

For each foreign currency:

  1. Open the currency record.
  2. Select Add Exchange Rate.
  3. Enter the rate as the number of home currency units per one unit of foreign currency. For example, if your home currency is GBP and 1 USD = 0.80 GBP, enter 0.80.
  4. Enter the effective date for the rate.
  5. Click Save.

The system maintains a history of exchange rates. When calculating financial values, it uses the rate that was in effect at the transaction date.

Step 4: Set Up Automatic Exchange Rate Import (Optional)

To import rates automatically from a bank web service:

  1. Select Import Exchange Rates from Web Service Now from the Currencies and Exchange Rates menu to test the import.
  2. To schedule regular updates, select Create Schedule for Import of Exchange Rates and configure the frequency (e.g. daily at 9:00 AM).

The import adds new rates without overwriting existing ones. Previous rates are preserved in the history.

Step 5: Verify the Setup

Check that:

  • Your home currency has a rate of exactly 1.
  • All foreign currencies have current rates.
  • The rate direction is correct (home currency units per one foreign currency unit).

Important Notes

  • Exchange rate changes do not retroactively recalculate past transactions. Only future calculations and reports reflect updated rates.
  • Depreciation is calculated in the asset's transaction currency. Exchange rates are used when converting to the home currency for consolidated reporting.
  • For organisations with many currencies, scheduled automatic imports save significant time and reduce the risk of using stale rates.