Best Practice for Penny Rounding & FX Adjustments in Zoho Books

Best Practice for Penny Rounding & FX Adjustments in Zoho Books

Hi everyone,

I’m just looking for some clarity on the correct way to handle very small rounding differences in Zoho Books when dealing with foreign-currency payments.

What I’m currently doing:
• I enter the supplier bill exactly as shown.
• When paying a foreign-currency bill, the amount that clears my GBP bank account sometimes differs by £0.01 due to real-world FX rounding by the bank.
• To keep my reconciliation clean, I manually change the exchange rate on the payment to match the exact GBP amount that appears on my bank statement.
• If this still leaves a tiny difference (e.g. £0.01), I create a small manual journal to the locked “Exchange Gain or Loss” account to force the settlement to match perfectly.

My question:
Is this the recommended best practice? Or is there an official Zoho Books workflow I should be following for small FX rounding differences?

Just want to make sure I’m doing things correctly and in a way that aligns with accounting standards.

Thanks in advance!
    • Topic Participants

    • tom