👉 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.
The settlements are then converted to the home currency when sent to Xero. 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 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 (e.g., GBP for Amazon.co.uk, CAD for Amazon.ca, etc.).
STEP 2. Enable multicurrency option in taxomate.
Go to Settings > Invoice and enable multicurrency.
STEP 3. Reconcile Invoices with Deposit in Xero
Amazon converts your settlement payment from the marketplace currency to your base currency. In order for Xero to recognize the invoice is in a different currency, you have to make a minor change when reconciling.
Follow this article on reconciling after you have selected Reconcile and Match, un-select the tickbox to have it display allow currency invoices.
For example, you would un-tick the box where it says 'Show GBP items only'.
Xero will then automatically detect the exchange rate and will allow you to reconcile. Xero will also calculate if there are any gains or losses from the exchange rate.