Currency breakdown in views
Considerations for handling foreign currency invoices
Settings affecting currency features
In the new Sales Invoices program, there is multi-currency functionality that supports:
- The separation of company's default currency (accounting currency) and billing currency.
- The use of other non-EUR currencies as company's default currency and additional billing currencies.
- Creation of invoices in the company's default currency and in additional currencies.
- Saving row and invoice total amounts in both currencies (default and billing).
- Defining and changing the exchange rate to the invoice via invoice form manually.
- Displaying equivalent amounts in the invoice's default currency in the summary section of the invoice form when dealing with a foreign currency invoice.
- Automatic completion of the previous day's closing rate as the exchange rate for companies with EUR as the default currency billing in another currency. The rate is based on ECB reference rates retrieved from the Bank of Finland API.
- Automatic rate retrieval currently only functions when the default currency is EUR. If another default currency is in use, rates must be entered manually.
- Automatic updating of the unit price of a product according to the exchange rate when a currency is selected on the invoice form. The unit price can also be manually adjusted.
- Matching payments to non-default currency invoices in company's default currency (accounts receivables operates in the company's default currency).
- If a company has a foreign currency account, currency conversion to the default currency should be done outside the service, and the payment should be manually entered.
Currency breakdown in views
Default currency and billing currency columns are available in the Invoices - All invoices and Accounts Receivables - Open invoices views. Other views, such as transfer views for accounting, display amounts in the default currency.
Considerations for handling foreign currency invoices
Open and paid amounts on the invoice are calculated based on the invoice's total amount in the default currency, and updates (through payments) also occur in the default currency.
When a credit note is created from an existing foreign currency invoice, the credit note receives the same exchange rate as the original invoice. If necessary, the rate can be changed via the credit note form. Instructions for quick credit note creation can be found here.
When copying a foreign currency invoice, the drafted invoice gets the latest available rate, but you should reselect the products on the invoice lines for the rate to update on the invoice lines.
When opening a draft invoice in a currency other than the default currency, it updates automatically with the latest available exchange rate. However, you need to reselect the products on the invoice lines for the rate to update on the invoice lines.
When sending a reminder for a foreign currency invoice, the invoice amount is converted to the billing currency using the same rate as the original invoice. Additionally, any interest due and the conversion of the already paid amount are done at the corresponding rate.
The new payment form displays payment and invoice amounts only in the default currency. Automatic matching of payments also uses open amounts in the default currency.
Settings affecting currency features
The default currency is defined during program setup in Settings - General Settings - Company tab. The company's default currency is the currency used for accounting purposes and also in the reporting section. The company's default currency cannot be changed once it is set and saved.
Other currencies are currencies used in billing in addition to the default currency. They are available in various sections of the program where currency can be exchanged. New currencies can be added, but once saved, they cannot be deleted.