A document keeps the rate of its own date
Rates are pulled daily and each document is recorded at the rate of its own date, so a closed period stops moving. The difference realised when the money actually arrives is reported as its own line.
Converting everything at today’s rate rewrites the past
If last March’s invoice is valued at today’s rate, last March’s profit changes every morning. Nothing can be reconciled against a number that moves.
Each document keeps its own rate. Reporting currency can change; the history does not.
FX difference is a result, not a rounding
The gap between the rate on the invoice and the rate on the day the money arrived is a real gain or loss, and for a cross-border seller it can be material.
It is computed when the payment is matched and reported as its own line rather than absorbed into revenue.
Frequently asked questions
Which rate is used for an invoice?
The rate of the invoice’s own date. It does not change afterwards.
Are FX gains and losses reported?
Yes, as their own line, computed when the payment is matched.