Automatic exchange rates, zero configuration
Managing exchange rates manually is tedious and error-prone. Officaid handles this automatically by pulling real-time exchange rates for all your multi-currency transactions. There's nothing to configure and no settings to manage. It just works.
How Officaid Uses Exchange Rates
When you create an invoice, expense, or payable in a foreign currency, Officaid needs to know its value in your default currency for reporting and tracking purposes. Rather than asking you to look up exchange rates, Officaid fetches the latest rate automatically.
This automatic conversion happens in two scenarios:
- Before payment – Officaid uses the latest exchange rate to calculate an estimated value in your default currency. This estimate updates automatically as rates change.
- When recording payment – You enter the actual amount received or paid in your default currency, and Officaid calculates the final conversion rate based on what really happened.
Viewing Exchange Rates
Anywhere you see *Estimated in Officaid, it means some amounts have been converted using the latest exchange rates. You can click this label to see the current rates being used.
An info popup will display:
- A note explaining that amounts have been converted to your default currency
- The current exchange rate for each currency pair (e.g., USD/SGD: 1.2923)
You'll find the *Estimated label in places like the Clients tab under Income, dashboard charts, and anywhere Officaid displays converted values for unpaid transactions.
Recording Payments with Exchange Rates
When you record a payment for a multi-currency invoice, Officaid shows you three fields:
- Amount (invoice currency) – the amount being paid in the original invoice currency (e.g., USD). Adjust this for partial payments.
- Conversion Rate – the exchange rate between the invoice currency and your default currency
- Amount (default currency) – the actual amount received in your default currency (e.g., SGD). This is what hits your bank account.
The easiest approach is to enter the actual amount you received in your default currency. This is the number you'll see on your bank statement, so it's the most practical. Officaid will automatically calculate the conversion rate for you.
You can also adjust the invoice currency amount if you're recording a partial payment, or enter a specific conversion rate if your bank provided one.
Why This Approach Works
By letting you enter the actual amount received, Officaid ensures your records match your bank statements exactly. This makes reconciliation straightforward because there's no guesswork about exchange rates or conversion fees your bank may have applied.
If an invoice is for USD 10,000 and you receive SGD 12,906.10, simply enter that amount in the Amount (default currency) field. Officaid records the effective conversion rate (1.2906) automatically, giving you an accurate audit trail of what actually happened.
Partial Payments
Multi-currency invoices support partial payments just like regular invoices. When recording a partial payment, adjust the Amount (invoice currency) field to reflect the portion being paid. The conversion rate and default currency amount will update accordingly.
How Estimated Values Stay Current
For any unpaid invoices or outstanding payables, Officaid continuously updates the estimated value using the latest exchange rates. This means:
- Your dashboard charts always reflect current values
- Reports show up-to-date estimates for outstanding amounts
- You can see how currency movements affect your cash flow projections
Once a payment is recorded, the conversion rate is locked in and the estimated value is replaced with the actual value. Historical transactions won't change even if exchange rates move later.
Frequently Asked Questions
Officaid uses real-time exchange rates from global financial markets. Rates are updated continuously to ensure accuracy.
Yes. When recording a payment, you can enter your own conversion rate if it differs from the automatic rate. This is useful when your bank applies a specific rate or includes conversion fees.
No problem. When recording the payment, simply enter the actual amount you received in your default currency. Officaid will calculate the effective conversion rate based on what you entered, ensuring your records match your bank statement.
No. Once a payment is recorded, the conversion rate is locked in. Future exchange rate changes only affect unpaid items.
For paid transactions, the conversion rate is stored with the payment record. For unpaid transactions, click the *Estimated label to see the current rates being applied.
The estimated value uses the current market exchange rate, but your bank may apply a different rate or include conversion fees. The actual amount you receive may vary slightly. This is why Officaid lets you enter the real amount when recording payments.
What's Next?
Now that you understand how exchange rates work, explore these related guides:
- Understanding Multi-Currency in Officaid – overview of multi-currency features
- Setting Up Your Operating Currencies – add the currencies you need
- Invoicing in Multiple Currencies – create and send foreign currency invoices
- Recording a Payment – mark invoices as paid