Xero workflow

How to monitor FX exposure from Xero

Xero holds the raw material for FX exposure: invoices, bills, payments, contacts, currencies, and bank balances. The hard part is turning those records into a finance view that separates open exposure, cash timing, and settled FX.

For Xero users looking for a practical FX exposure workflow.

The short answer

Start with open foreign-currency invoices and bills, add payment status and due dates, then split settled FX from month-end revaluation so the exposure view reconciles back to Xero records.

Source records

Record	Used for	Watch out
Sales invoices	Open foreign receivables, customer concentration, due-date buckets.	A favourable revaluation still needs the customer payment to land.
Bills	Supplier obligations, payable timing, and natural offset checks.	A payable due before the receipt creates a near-term cash gap.
Payments	Realised FX once the invoice or bill is settled.	Settlement timing matters more than the invoice date for cash impact.
Bank balances	Foreign cash that may offset exposure or create revaluation movement.	Separate bank revaluation from invoice P&L for a clean bridge.

What finance teams run into

Problem	What it means	Response
Rate trail distrust	Users want to know which rate caused the movement.	Show the revaluation date, rate source, and invoice-level impact.
Opaque gain/loss reports	The reported FX number is hard to explain to non-accountants.	Split realised, unrealised, cash balance movement, and invoice movement.
Spreadsheet reconciliation	Finance teams export data to rebuild the story manually.	Keep source records connected to the final exposure view.

Checks before relying on the numbers

Rate date. Finance needs to know whether the movement comes from invoice date, payment date, or month-end revaluation.
Rate source. The number is only explainable if the source is consistent and visible.
Invoice status. Open invoices belong in unrealised FX; paid invoices belong in realised settlement impact.
Cash timing. A receivable funds a supplier bill once the cash actually lands.

Xero data to finance question

Illustrative figures, not customer data.

Item	Value	Note
Invoices	Foreign receivables	Open customer amounts and due dates.
Bills	Foreign payables	Supplier obligations and payment timing.
Payments	Settled items	Actual realised FX once cash moves.
Rate trail	Revaluation date and source	Finance needs the date and source behind each FX movement.

Xero FX review checklist

Stage	Finance question	What to check
Pull open items	What is still exposed?	Open invoices and bills by currency.
Match payments	What has settled?	Payment dates and realised FX impact.
Bucket timing	What is due first?	0-7, 8-21, 22-45, 45+ day windows.
Explain movement	Why did FX P&L change?	Rate movement, new invoices, paid invoices, overdue items.

Common mistake

Exporting one Xero report into a spreadsheet often loses the link between invoice timing and FX P&L.

Where Hedgr fits

Use Hedgr to connect the Xero records into one exposure view for open invoices, realised FX, and cashflow timing.

Related guides

Hedgr is read-only. It does not execute trades, move funds or give investment advice.

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