Exchange rate differences when transferring from a foreign currency account


When making a purchase in Germany, I pay the expense from the currency account on the basis of the pro forma sent to me. I receive the invoice with the date of issue the same as the date of transfer of the payment made by me. How to calculate exchange rate differences?

Magdalena, Kołobrzeg


A pro forma invoice is not an accounting document, but a commercial one, which means that it is not taken into account for the purposes of calculating exchange rate differences. It is imperative to analyze the correct invoice. If the invoice (i.e. the correct tax invoice) is issued with the date on which you paid for the expense, there will be no exchange rate differences (the rate used to post the cost and convert the payment would be the same).

If, on the other hand, the invoice date differs from the payment date, then there would be exchange differences, which should be calculated as follows:

  • convert the expense value from the invoice at the exchange rate on the last business day preceding the invoice issue,
  • convert the value of paid receivables into PLN based on a foreign currency bank statement at the exchange rate from the last business day preceding the day of payment,
  • from the amount from the first point, subtract the amount from the second point.

If the value is positive, it is an income, and if the value is negative, it is an expense.