We understand some businesses use custom FX rates or rates that are different to Mayday's default rates. That's why we allow you to override the rates.
Rates Mayday uses by default
Mayday uses FX rates from the European Central Bank Exchange wherever you are managing intercompany accounts with different currencies.
It's important to understand why Mayday's rates are not Xero's rates
Given its not possible to pull the rates from Xero, Mayday generates its own rates using the European Central Bank Exchange rates.
These rates are generally materially the same, but we understand for some businesses its important to know this so they can customise/override our rates to match what goes through Xero.
There is another reason why Mayday uses its own rates: Xero uses the FX rate as at 11pm in the time zone the org is set to. So for instance, if I have a UK & Aus entity, the UK entity will use GBP -> AUD as at 11pm UK time, but the Aus entity will use GBP -> AUD as at 11pm Aus time. So the two entities will have different FX rates. So even if we matched Xero, we're going to be using a different FX rate to one of those entities.
Mayday can pull rates at the same time across entities, which helps with matching transactions across currencies in different Xero organisations.
Where Mayday uses these rates
We use these daily rates in a number areas, including:
Balancer: Identifying which transactions in one loan (i.e. GBP) match to transactions in another loan (i.e. AUD)
Balancer: Calculating the discrepancy between two loan accounts that are in different currencies
BRAG: Identifying bills/invoices to match where we have a bank feed item (i.e. AUD) that we're matching to a bill/invoice in another currency (i.e. USD)
And more...
When in Mayday Balancer, viewing the transaction details you can hover over a transaction to see the rate used to convert it. This is the daily rate being used.
These are also the rates we use to determine any discrepancy between loan balances on any given day.
Customising or overriding FX rates
If necessary, you can customise or override the FX rates here on each of your loans:
You can choose to update the daily rate (the date will default to whatever date you have selected on the Balancer dashboard):
Alternatively, you can set a fixed rate for the month, or fix a rate ongoing.
Audit trail of FX rate changes
You can view FX overrides in settings > exchange rates. From here you can also remove a rate that was previously created (i.e. if you made a mistake).
Posting FX Adjustments
Refer to: Posting FX Adjustments article