Creating an invoice in a foreign currency (conversion rate)

If your customer is in a different country or prefers to pay in a foreign currency, you can create an invoice in that currency. Usystems will apply an exchange rate to convert the foreign amount to your company's home currency for accounting and reporting.

Before you start

• The foreign currency must be set up in your system (ask your administrator if you're unsure).
• You should know the exchange rate to use, or use Usystems' current rate if it is configured.
• The customer may have a default currency preference already set in their record.

Steps

1. Go to Invoices → New Invoice Open in Usystems

2. Select your customer. If the customer has a default currency, it may be pre-filled in the invoice.

3. Look for the Currency field in the invoice header.

4. Click the currency dropdown and select the foreign currency you want to invoice in (e.g., USD, EUR, PKR).

5. A Conversion Rate field will appear. Enter or confirm the exchange rate:

   • If you have a fixed rate for this customer, enter it manually.
   • If the system has a current market rate configured, it may pre-fill; verify it is current.

6. Add line items as usual. Item prices will be entered in the currency you selected.

7. The invoice total will be displayed in the foreign currency. Below it, Usystems will show the equivalent in your home currency (using the conversion rate you entered).

8. Complete the rest of the invoice details and save.

Accounting impact

When you invoice in a foreign currency:

• Sales revenue is recorded in the foreign currency initially, then converted to your home currency for accounting records.
• Exchange rate difference: if the actual payment rate differs from the rate you used, a gain or loss on exchange may be recorded when the payment is made.
• Accounts receivable is recorded in the home currency amount (the converted total).

Over time, currency fluctuations can create gains or losses on outstanding foreign-currency invoices.

Tips & common mistakes

• Lock in the rate. Once you enter a conversion rate and save the invoice, that rate is fixed for this transaction. If the rate changes later, it does not affect this invoice.
• Match your source. If the customer is paying from a specific bank or date, use the exchange rate from that bank or date, not a general market rate.
• Rounding. Small rounding differences are normal when converting; do not second-guess the system's math.
• Invoice currency vs. payment currency. The invoice is in the foreign currency, but the customer can pay in any currency their bank allows. Make the expected currency clear in any communication with the customer.