Setting and updating exchange rates

Exchange rates tell Usystems how much one currency is worth relative to another. If you work in multiple currencies, you must set and update exchange rates regularly so that when you record an invoice or purchase in a foreign currency, the amounts convert accurately to your default currency for accounting records.

Before you start

• You need admin permissions to set exchange rates.
• You must have already added all currencies you plan to use (see "Adding currencies").
• You should know the current market exchange rates or use your company's official rate policy (e.g., the rate used on a specific date, or the bank rate).
• Exchange rates are typically updated daily or weekly, depending on currency volatility and your business's frequency of international transactions.

Steps

1. Go to Settings → Exchange Rates or Settings → Currencies → Exchange Rates. Open in Usystems

2. Look for an existing rate for the currency pair you want to update (e.g., USD → AFN), or click Add Exchange Rate or Add New Rate to create a new one.

3. Select or confirm the "from" currency (the currency you are converting from, e.g., USD).

4. Select the "to" currency (your default currency, or another currency in your company, e.g., AFN).

5. Enter the rate: the amount of the "to" currency you receive for one unit of the "from" currency. For example:

   • If 1 USD = 78 AFN, enter 78 as the rate from USD to AFN.

6. Enter the effective date (the date from which this rate applies). This is usually today's date for a new rate.

7. Click Save or Update to confirm.

8. Repeat for each currency pair.

Accounting impact

When you record a transaction in a foreign currency, Usystems applies the exchange rate for the transaction's date to convert the foreign amount to your default currency. The conversion is recorded in a currency revaluation gain or loss account, which tracks any difference between the original conversion rate and the current rate. This is essential for accurate financial reporting in a multi-currency environment.

Tips & common mistakes

• Set rates for all active pairs. If you work in both USD and EUR, set rates for USD → AFN and EUR → AFN so conversions work both ways.
• Date your rates correctly. Use the date the rate became effective. If you change a rate on a Tuesday, transactions from that day onward will use the new rate.
• Update regularly. Volatile currencies (like AFN or PKR) can fluctuate daily. Set a calendar reminder to update rates weekly or as often as your business requires.
• Use reliable sources. Base rates on your bank, a major financial news service, or your company's official policy, not on ad-hoc estimates. Document your source so auditors understand your rate policy.
• Keep historical rates. Some businesses keep old rates in the system for reference. Check whether Usystems archives old rates automatically or if you need to manage them separately.