Creating a cash purchase in a foreign currency (conversion rate)

If you buy from a vendor who invoices in a foreign currency (such as USD or EUR), you can record the purchase in that currency. Usystems will apply an exchange rate to convert the foreign amount to your local currency for accounting purposes.

Before you start

• The vendor must be set up to supply in the foreign currency (e.g., a vendor marked as "USD supplier").
• You need to know the exchange rate on the date of the purchase, or allow Usystems to use the daily rate if it is set up.
• Your company's local currency (AFN, for example) must be set in Settings.

Steps

1. Open a new cash purchase. Open in Usystems

2. Select the Vendor who supplies in the foreign currency. Their currency will automatically fill in the Currency field.

3. If the vendor's default currency is wrong, click the Currency dropdown and select the correct foreign currency (e.g., USD).

4. Add product lines as normal, entering quantities and prices in the foreign currency.

5. The line totals will show in the foreign currency.

6. Scroll down to the Exchange Rate field. It will show the current rate (e.g., 1 USD = 80 AFN).

7. If you need to use a different rate (e.g., the rate your bank quoted), click the field and change it.

8. The Total Due will display in both the foreign currency and your local currency.

9. When you save and confirm, the purchase is recorded at the exchanged rate.

Accounting impact

When you save a foreign currency purchase:

• Inventory (or expense) is debited at the local currency amount (converted at the exchange rate).
• Cash or liability is credited at the local currency amount.
• The exchange rate difference (if any) is recorded in an exchange gain/loss account.

For example, if you buy USD 100 worth of goods at 80 AFN/USD, the inventory is debited for 8,000 AFN.

Tips & common mistakes

• Where is the exchange rate from? If Usystems shows a rate you do not recognize, check your Settings for the exchange rate source (it may be updated daily from a bank or API). If it is wrong, ask your administrator to update it or manually change it on this purchase.
• Changing the rate later: Once a purchase is confirmed, the exchange rate is locked. If the rate changes after you save, you cannot edit the confirmed purchase; instead, you must create a new one or record a currency adjustment (ask your accountant).
• Multiple currencies on one purchase: You cannot mix currencies on a single purchase. If you are buying from vendors in different currencies, create separate purchases for each currency.
• Vendor in multiple currencies: If a vendor can supply in either AFN or USD, create two vendor records (one per currency) or contact your administrator to set up currency variants.

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