Why do bank transfer amounts differ from direct currency conversions in iplicit?

When processing a multi-currency bank transfer in iplicit, the system does not convert directly from the deposit currency to the withdrawal currency. Instead, it converts through the legal entity's reporting currency in two stages. This article explains why that two-stage conversion creates a small variance compared to a direct conversion, and how to post exact amounts to each bank account if needed. All currency conversion behaviour described here applies to the Bank Transfer function in iplicit.

How iplicit converts currencies in a bank transfer

iplicit processes multi-currency bank transfers in two stages:

1. The deposit currency is converted into the legal entity's reporting currency
2. The reporting currency amount is then converted into the withdrawal currency

Each stage applies a separate exchange rate. Because two exchange rates are involved rather than one, the final amount will often differ slightly from a single direct conversion between the two currencies. This is expected behaviour within iplicit's Bank Transfer module.

Example of a two-stage conversion variance in bank transfers

Using exchange rates as at 06/01/2025:

Bank transfer conversion via GBP reporting currency:

• USD $13,500.62 → GBP at 0.74080874 ≈ £10,000.00
• GBP £10,000.00 → EUR at 1.15492102 ≈ €11,549.21

Direct conversion:

• USD $13,500.62 → EUR at 0.85557559 ≈ €11,550.80

Resulting variance: €1.59

Can I adjust one side of a bank transfer independently?

No. The two sides of a multi-currency bank transfer in iplicit are interdependent. Updating the value on one side automatically recalculates the other. You cannot adjust the amounts independently — only the exchange rate can be amended to achieve the required result.

How to post exact currency amounts to each bank account

If you need specific, exact values posted to each bank account without the variance caused by two-stage conversion, use cashbook entries instead of a bank transfer:

1. Post a cashbook withdrawal from the source bank account
2. Post a cashbook deposit into the destination bank account

This approach allows you to enter the exact amount on each side, avoid multi-stage exchange rate rounding, and ensure the values align with what appears on your bank reconciliation.