Currency Exchange
Currency Exchange: cash and bank, accounts and accounting, e-Invoice and reporting.
Challenges
- Rates move by the minute, yet transactions are entered at a stale rate.
- The currency position in the till is not visible in real time.
- Above a certain amount, no identity verification record is kept for the transaction.
- The profit from the buy-sell spread is not measured separately.
- The difference between the end-of-day till count and the system balance is not put into a written record.
Workflows
Buy and sell transaction
- The day's buying and selling rates are set.
- If the amount exceeds a set threshold, identity verification becomes mandatory.
- The transaction updates both the currency and the cash position in the till.
Position and exchange spread
- The till position is computed in real time for each currency.
- The buy-sell spread is separated out as a profit line.
- At close of day the position and the till are reconciled.
Documents
- Transaction slip
- Identity verification file
- Till position listing
- End-of-day reconciliation
Reports
- Position by currency
- Exchange spread profit and loss
- Listing of transactions with identity verification
- Daily turnover and cash
Metrics
- Exchange spread margin
- Daily transaction volume
- Open position exposure
- Average amount per transaction
Compliance
- Authorised exchange bureau regulations
- Know-your-customer (KYC) obligation
- Suspicious transaction reporting
- Kvkk
Glossary
- Live exchange rate
- Date-effective price list
- Currency position
- Till balance per currency
- Identity verification threshold
- Field made mandatory by amount
- Exchange spread
- Buy-versus-sell difference line
FAQ
Can I update rates during the day?
Yes — buying and selling rates are updated intraday through a date-effective price list.
Can I see the till position in real time?
Yes — the till balance for each currency updates with every transaction.
Does identity become mandatory above the threshold?
Yes — once the amount threshold is crossed, the identity verification field becomes mandatory.
Can I calculate the exchange difference at the end of the day?
Yes, the currency position is revalued at the end-of-day rate and the exchange difference is posted to a voucher.
Can I see the cash-desk foreign currency balance by currency?
Yes, every currency is tracked as its own cash-desk balance.
Can I record the end-of-day till difference?
Yes, the counted amount is compared with the system balance and the difference is entered into a written record with its reason.
