Syft's consolidation feature allows you to consolidate complex corporate structures and other consolidations with ease; and then visualize, analyze, forecast and report.

Syft allows you to post transactions in various different countries, to change the exchange rate for your entity, and to consolidate the exchange rate for different entities.

With FX Rates on Syft, you can view end-of-period and average exchange rates and override them if required. To change an exchange rate, click on it and edit.

Navigate to "Settings" to view the average and month-end closing rates for each currency in a consolidation.

The average exchange rate is used for Profit and Loss items and the closing statement for Balance Sheet items. You can edit the rates by clicking on them or reset rates by clicking "Reset all rates".

For multi-currency entities and consolidations (or if you change the currency of an entity on Syft), P&L accounts are converted to the reporting currency using monthly average exchange rates while balance sheet accounts are converted at end of month rates.

Since profit (or loss) from the P&L is posted to the balance sheet, the difference in exchange rates results in an exchange rate difference. Users can choose where to post the difference:

Profit (or loss) is recorded at the average rate in the P&L. When it is posted to the balance sheet, it needs to be converted to the closing exchange rate in order to match the rest of the balance sheet accounts. The exchange rate recon account, which resides in owner’s equity, will account for the difference between the average and closing rates.

Profit (or loss) is recorded at the average rate in the P&L. When it is posted to the balance sheet, it needs to be converted to the closing exchange rate in order to match the rest of the balance sheet accounts. The exchange rate recon account, which resides in expenses (if it is negative) or other income (if it is positive), will account for the difference between the average and closing rates.