Creating a bill in a foreign currency (conversion rate)

If you purchase from vendors abroad and they invoice you in foreign currency (USD, EUR, PKR, etc.), you can create a bill in that currency and set the conversion rate to your base currency.

Before you start

• Your system's base currency is set (usually in settings)
• You know the vendor's invoice currency (USD, EUR, GBP, etc.)
• You have today's exchange rate (or the rate on the invoice date) between the two currencies
• You have the vendor's invoice

Steps

1. On the new bill form, after selecting the vendor, find the Currency field.

2. Click Currency and choose the vendor's currency:

   • Select from the dropdown (e.g., USD, EUR, PKR)
   • Once chosen, all item prices on the bill will be entered in this currency

3. Enter the exchange rate:

   • Look for an Exchange Rate or Conversion Rate field (usually appears after you select the foreign currency)
   • Enter the rate (e.g., 1 USD = 88 AFN, or "88" if the system shows the full rate as a label)
   • This rate is used to convert the bill total to your base currency for accounting

4. Add bill lines as usual:

   • Enter product quantities and prices in the foreign currency
   • Usystems automatically shows the converted total in your base currency

5. Review the converted totals:

   • The bill shows both the original amount (foreign currency) and the converted amount (base currency)
   • The accounting entry uses the base-currency amount

6. Save the bill:

   • The bill is recorded with the foreign-currency detail and the exchange rate applied
   • Accounts Payable is recorded in your base currency

Accounting impact

• Accounts Payable: recorded in your base currency (converted amount)
• Inventory or Expense account: recorded at the converted cost
• If the exchange rate changes before payment, a currency gain/loss may result (recorded when you pay the bill)

Tips & common mistakes

• Use the invoice date rate — if possible, use the exchange rate on the date you received the invoice (not today's rate) for consistency with your bank records.
• Exchange-rate volatility — if there is a gap between the invoice date and payment date, your realized rate may differ from the invoice rate; Usystems handles this automatically when you pay.
• Base currency setting — confirm your base currency is set correctly in Settings; all foreign bills will convert to it.
• Round-trip conversion — do not manually convert the bill to base currency before entering it; let Usystems do it using the rate you provide.