If you tried to convert a MYOB file to Xero using the built-in Xero conversion and your file used multiple currencies, chances are that your file got rejected.
What can you do?
For small businesses it may be simple to simply start over with a fresh Xero file. Simply enter the opening balances, any invoices and bills that still need to be paid, and maybe import your list of your regular customers and suppliers across so that you have their details handy.
For larger, more complex businesses, there may still be a need to transfer all your data across, and you would prefer to engage someone to do this quickly and accurately.
We recommend the conversion specialists at Kikla Consulting.
There are a few points to be aware of when you choose this option. namely:
- Different system accounts
- Historical transactions in a foreign currency
- The value of outstanding invoices and bills.
All solvable, just important that you understand the effect of multiple currency on the data that moves across from MYOB To Xero.
Point #1: You will see different system accounts
MYOB has an accounts receivable account (AR) for each currency you trade in, Xero has a single AR account in your base currency, and extra system accounts for foreign currency gains and losses
Xero manages two system accounts for realised and unrealised foreign currency gains and losses. This is where Xero accounts for the change in the value of your foreign currency invoices between the time they are raised and the time they are paid, for example.
Some MYOB versions don’t account for unrealised foreign currency gains and losses.
On top of this, in your MYOB file you would have had separate Accounts Receivable accounts for each currency.
Xero, on the other hand, has a single account for Accounts Receivable, which is managed in your base currency.
As part of your MYOB to Xero conversion, all your Accounts Receivable accounts will be merged into one.
How does this affect your data migration?
The main difference is that when you compare your MYOB and Xero reports, you may see a slightly different list of accounts.
Your conversion specialist should be able to clarify this for you.
“MYOB has an accounts receivable account (AR) for each currency you trade in, Xero has a single AR account in your base currency, and extra system accounts for foreign currency gains and losses”
Point #2: Your historical foreign currency transactions
Xero brings exchange rates daily from xe.com. You will love this function when you work with Xero because you can completely forget that you are dealing with multiple currencies. You will record your transactions in their actual currency and Xero will take care of all the exchange rates behind the scenes.
Depending on what MYOB version you are using, you may have entered exchange rates manually which may not match what xe.com has to say about those dates and so the two systems will not match.
To overcome this, your conversion specialist may choose to bring all the historical data across in your base currency (we are in Australia, so AUD).
The advantage is that the two systems will perfectly match when looking at your historical data.
The downside can be if you want to see your historical transactions in their original currency. To overcome this, simply ask your conversion specialist to include the original (foreign currency) transaction amount in the transaction narration.
“To keep data integrity, just bring across all historical transactions in their base currency. Include the original amount in the foreign currency in the transaction narration for completeness”
Point #3 The value of unpaid invoices and bills
Imagine that you are an Australian business and at the time of your conversion from MYOB to Xero you have a week-old invoice worth US $100 that is unpaid at the time of the Xero conversion.
Your P&L in MYOB would be largely unaffected by this.
But once we transfer the same data to Xero, your Xero P&L will show an extra value in your under unrealised foreign currency gains/loss.
This is because Xero knows that since you raised this invoice, its value, in terms of your base currency, has gone up or down. It’s now worth more or less of your local currency. Xero automatically reflects that difference in your P&L.
Your conversion specialist can point this out for you and make sure you understand
Don’t let this deter you from making the move from MYOB to Xero. In fact, the way Xero handles multi currency is probably in itself a good reason to move across.
“Invoices and bills that are unpaid at the time of your Xero conversion will give rise to unrealised foreign currency gains or losses in your Xero P&L. That is, in fact, a good thing”
Where to from here?
Understanding all of this, if you are keen to go ahead and move your multi currency data from MYOB to Xero, get in touch through the contact form here, or directly with our trusted friends at [Kikla Consulting].
Enjoy your new Xero experience!
To find out more about your MYOB to Xero conversion book a time with a conversion specialist.
While ConvertworX does not currently take on Xero conversions, we recommend our ex in-house conversion specialists at Kikla Consulting.