Reconcile foreign-currency accounts in the transaction currency first: an invoice of 10,000 EUR is the same on both sides even if each company converts it at a different rate. Only after the currency balances agree should you look at the local-currency difference, which is an exchange rate difference to be booked, not a missing item.
Why balances look different
- Each side converts at its own rate (central bank, bank, invoice date or payment date).
- Payments are converted at the payment date rate, invoices at the invoice date rate.
- Year-end revaluation is booked only in the reporting currency.
- Bank charges deducted from the payment amount.
Example
In EUR the account is settled. The local-currency balances are exchange differences each side books for itself; they do not need to agree.
| Document | EUR (both sides) | Seller in local currency | Buyer in local currency |
|---|---|---|---|
| Invoice 05 Oct | 10,000.00 | 357,000.00 | 356,500.00 |
| Payment 30 Oct | −10,000.00 | −362,000.00 | −362,000.00 |
| Balance | 0.00 | −5,000.00 | −5,500.00 |
Frequently asked questions
Should both companies use the same exchange rate?
Not necessarily; each follows its own accounting policy. Agreement is reached in the transaction currency.
Can mutabakat.com calculate exchange differences?
Yes. Foreign-currency lines are matched in the transaction currency and the exchange difference can be calculated for the period you choose.
Start with one account. If the differences are not clearer than in your spreadsheet, you have lost nothing.
Start free trial →Last updated: November 14, 2026 · mutabakat.com