👉 To use multicurrency in Xero you must have an Established/Business Edition Pricing Plan.
All settlements are imported into Taxomate and sent to Xero in the currency of the country marketplace (unless the marketplace customer is changed). The settlements are then converted to the base currency when sent to Xero. The base currency was selected when you set up your Xero account and cannot be changed after you added your organization.
Taxomate can import up to 18 months of conversion rates used by Amazon, and uses Xero's conversion rates if the settlement is older than 18 months.
👉 If you receive your Amazon payment in a foreign currency that is not your home currency, you will have to use a clearing account. For example, your home Xero currency is GBP, but Amazon converts the Amazon.ca payment from CAD to a USD bank account.
Step 1. Add the marketplace currency in Xero
In Xero, click on your organization's name, select Settings, then click Currencies.
Click Add Currency.
Select the currency of the marketplace (for example, GBP for Amazon.co.uk, CAD for Amazon.ca).
Step 2. Turn on multicurrency in Taxomate
Go to Settings > Invoice. Under Currency and months, turn on Multicurrency ("Use an exchange rate when payments arrive in different currencies"). Select Review and save, read the review, and confirm.
Step 3. Reconcile invoices with the deposit in Xero
Amazon converts your settlement payment from the marketplace currency to your base currency. For Xero to recognize that the invoice is in a different currency, you have to make a small change when you reconcile.
Follow this article on reconciling. After you have selected Reconcile and Match, un-select the tickbox so that it also shows other-currency invoices.
For example, you would un-tick the box that says "Show GBP items only".
Xero will then automatically detect the exchange rate and let you reconcile. Xero will also calculate any gains or losses from the exchange rate.
If Xero says the organisation is not subscribed to a currency
Xero refuses a settlement when the currency of the settlement is not added to your Xero organisation. The message is, for example, "Organisation is not subscribed to currency EUR". Taxomate also shows "{Currency} is not turned on in Xero" with the steps.
Add the currency in Xero (Step 1 above). Then open the settlement in Taxomate and select Send again. If a settlement was split into two currencies, for example GBP and EUR, add every currency that it uses.
If "Clearing account needed" or a currency message shows
The rate-entry window and the account-currency rules are in "Can I convert a foreign Amazon marketplace currency to my home currency in QuickBooks?". For Xero, Taxomate does not ask for a clearing-account conversion, and Clearing account needed does not apply.