Handling foreign exchange (FX)

Equali takes two currencies for each "Financial Entry":

• 1) Currency: The currency is the original currency of the financial entry (e.g. sale, refund). This is sometimes known as the "Presentment currency", i.e. the currency used to make the purchase. This relates to the "Financial Entry Amount" and "Transaction Amount" fields.

• 2) Settlement Currency: This is the currency of the balance or settlement from your payment provider (e.g. Shopify Payments or Stripe). Often, this is not shown on the "Internal" side of a reconciliation because the internal ledger or eCommerce platform doesn't have visibility of it, but it will always be present for the "PSP" side of a reconciliation. This relates to the "Settlement Amount" field.

Equali does not calculate foreign exchange (FX) rates. Any FX rate presented in the Equali dashboard or reports was used by the payment provider for that financial entry. 

FX & Tax Items

If tax is applicable for a given financial entry, we show the "Currency" in the dashboard based on what is passed by the eCommerce platform (e.g. Shopify). The "Settlement Amount" is populated for reconciled financial entries' tax items based on the FX rate used by the payment provider. 

Reconciliation Breaks - FX Discrepancies

FX discrepancies are a common cause of reconciliation breaks. For customers on our "Premium" subscription plan, we can set overrides for rounding and FX discrepancies, otherwise all FX discrepancies will be flagged within the Equali dashboard for resolution.