Exchange rates

xpnAI uses exchange rates from XE.com, the same source Xero uses. The time at which those rates are taken can differ, so bank revaluations and unrealised foreign exchange gains and losses may not exactly match Xero. Realised gains and losses are reported precisely and are unaffected by this timing difference.

One daily rate across organisations

Xero’s daily rate is tied to a particular hour in the organisation’s time zone. Organisations in different time zones can therefore use different rates for the same currency pair on the same date.

xpnAI supports reporting across multiple organisations. To keep that reporting consistent, it uses a single daily rate timing across organisations, regardless of their individual time zones. This gives each currency pair a common rate for the day.

For more about Xero’s rate source and custom rates, see Xero’s exchange-rate guidance .

Why unrealised amounts can differ

xpnAI calculates bank revaluations on the last day of each completed month. Each foreign-currency bank account receives at most one balanced revaluation journal for that month. A revaluation that rounds to zero creates no journal. A mid-month sync processes completed months only, so a report dated within the current month includes revaluations through the previous month end.

The adjustment values the closing foreign-currency balance at the month-end rate, allowing for the previous closing valuation and transactions during the month at their dated rates. When a transaction or exchange rate changes, xpnAI recalculates the affected month and subsequent completed months.

Exchange rates move throughout the day, so using a different time from Xero can produce a different valuation even though both systems use XE.com.

These timing differences are typically small, usually less than 10 basis points, or 0.1%. This is a typical difference, not a fixed limit.

Each month-end revaluation brings the bank balance to the applicable closing valuation. Earlier timing differences are reflected in the next month-end adjustment. A new timing difference may still exist at that date, so the two systems may still differ.

Overpayments and bank currency

Overpayments recorded in the organisation’s base currency are converted to the foreign bank account’s currency using the transaction’s Xero exchange rate. Each converted movement is rounded to two decimal places before calculating the bank balance. The original transaction amount and currency are preserved. Amounts already in the bank account currency are not converted again.

Transactions with a missing currency, another currency mismatch, or a missing or invalid rate needed for conversion are excluded from bank revaluation. These transactions still sync, but their movements do not contribute to the revaluation. These exclusions can cause differences beyond the rate-timing differences described above.

Realised gains and losses

Realised FX gains and losses arise when a foreign-currency transaction is settled. xpnAI reports these precisely. The daily rate timing difference described here affects bank revaluations and unrealised gains and losses only.

Compare results with Xero

Use the same organisation, reporting date and currency when comparing results. Separate realised gains and losses from bank revaluations and unrealised amounts so you can identify where a difference arises.

Workspace rate overrides and missing daily rates can also affect the rate used. For conversions at a specific date, xpnAI prefers the daily rate, then the month’s month-end rate, then its monthly average. Workspace overrides take precedence. Period-average conversions continue to prefer monthly averages.

For help requesting balances and conversions through your assistant, see Work with your finance data.