Process foreign currency transactions

NOTE: You can only pay an invoice that you've issued in the same currency. For example, you can't pay a Euro invoice in GBP.

To learn more about processing a specific transaction type, select the relevant option below.

Invoices, credit notes and quotes >

When entering invoices, credit notes and quotes, you create them as normal. However, you also need to consider the following:

The default exchange rate appears in the top section of the invoice or credit note. If you chose to use live exchange rates, this is the most up-to-date rate from the ECB. If you don’t use live exchange rates, this is the default exchange rate you entered in Business Settings. In either case, you can overwrite the exchange rate if required
Item lines shown on the invoice, credit note or quote appears in the relevant currency for the contact
Products and services with a default price or rate convert automatically based on the contact’s currency and the current exchange rate
The VAT Analysis window always shows the base currency
If you enter values for the invoice, credit note or quote, then change the contact to one with a different currency. Either convert the values or leave them as they are. We'll prompt you to do this. If you convert them, the values update based on the new contact’s currency
If you convert a quote, draft invoice or credit note, the original exchange rate applies. If the exchange rate has changed since you created the quote or draft, enter the correct rate in the Exchange Rate box
We'll automatically mark invoices, credit notes or quotes for VAT registered EU customers, or non-EU customers, to zero-rate for VAT. You can’t change this

For more information about how to enter invoices, credit notes and quotes, see the following articles:

Invoice receipts and payments >

There’s extra information you need to check when recording a receipt or payment from within an invoice using foreign currency.

Go to Sales, Sales Invoices or Purchase, Purchase Invoices and select the required invoice then Record Payment.
Check or enter the following information:

Amount Received*	Enter the total amount paid in the foreign currency. The amount in your base currency appears under Total.
Exchange Rate*	When you use live exchange rates, this is the current rate from the ECB. You can overwrite this.
Paid into Bank Account*	Choose the relevant bank account.
Date Received*	Enter the date.
Reference (optional)	Enter a reference if needed.
Currency Charges £	Enter any charges you incurred from your bank for this receipt. Currency charges always appear in your base rate.

Select Save.

Customer receipts and supplier payments >

You can enter customer receipts and supplier payments to record a payment for multiple invoices at the same time. You can also do this to record a payment on account in a foreign currency.

Go to Banking and select the required bank account.
Select New then from the drop-down list select Sale / Receipt or Purchase / Payment.
On the Customer Receipt or Supplier payment tab, check or enter the following information:

Customer / Supplier *	Enter either the company name or reference, then choose the customer/supplier.
Paid into / from Bank Account*	Check the correct bank account appears. If you need to change this, choose the correct account from the drop-down list.
Date Received*	Enter the date.
Reference (optional)	Enter a reference for this receipt if needed.
Amount Received / Paid*	Enter the total amount the customer has paid in their currency.
Exchange Rate*	If you use live exchange rates, this is the current rate from the ECB. You can overwrite this.
Currency Charges £	Enter any charges you incurred from your bank for this receipt. Currency charges always appear in your base rate.

Complete the Customer receipt or Supplier payment as normal.

Customer and supplier refunds >

You can use the customer or supplier refund option to refund credit notes or payments on account in a foreign currency.

Go to Banking then select the required bank account.
Select New and from the drop-down select Purchase / Payment or Sale / Receipt.
On the Customer Refund or Supplier Refund tab, check or enter the following information:

Customer / Supplier*	Enter either the company name or reference, then choose the customer.
Paid from / to Bank Account*	Check the correct bank account appears. If you need to change this, choose the correct account from the drop-down list.
Date Refunded*	Enter the date you refunded the customer / supplier.
Reference (optional)	Enter a reference for this refund if required.
Total Refund*	Enter the total amount you’ve refunded in the customer or supplier’s currency.
Exchange Rate*	When using live exchange rates, this is the current rate from the ECB. You can overwrite this.
Currency Charges £	Enter any charges you incurred from your bank for this refund. Currency charges always appear in your base rate.

Select Save.

Processing foreign currency transactions

Invoices, credit notes and quotes >

Invoice receipts and payments >

Customer receipts and supplier payments >

Customer and supplier refunds >