Taking payment in a different currency than the invoice

In a multi-currency environment, an invoice may be issued in one currency (e.g., USD) but payment received in another (e.g., AFN). The system automatically converts the payment using the current exchange rate. This may result in a gain or loss if exchange rates have moved since the invoice was created.

Before you start

• Your system must support multi-currency transactions (ask your administrator if unsure).
• Know the invoice currency and the payment currency.
• Know the amount and date of the payment.
• Understand that exchange-rate gains/losses are recognized on your books (usually as a separate GL entry).

Steps

1. Go to Invoices list and open the invoice. Open in Usystems

2. In the Payments section, click Add Payment (or + Payment).

3. Enter the payment details:

   • Payment Date: The date of the payment.
   • Payment Method: How the customer paid (bank transfer, cash, etc.).
   • Account: The cash or bank account in the payment currency.
   • Payment Currency: Select the currency the customer is paying in (different from the invoice currency).

4. Enter the Amount in the payment currency. The system automatically converts this to the invoice currency at the current exchange rate and shows you the converted amount.

5. Review the conversion:

   • Original amount (in payment currency)
   • Converted amount (in invoice currency)
   • Exchange rate applied

6. If the conversion is correct, click Save to record the payment.

7. If the converted amount does not exactly match the invoice balance, the system:

   • Records the payment in the amount received (converted).
   • Recognizes an exchange-rate gain or loss (usually recorded separately in your accounts).
   • Leaves the invoice in Paid or Partial status depending on whether the converted amount equals the invoice total.

Exchange-rate gains and losses

• Gain: If the exchange rate has moved in your favor, you receive more in your home currency than the original invoice value. The difference is a gain.
• Loss: If the exchange rate has moved against you, you receive less in your home currency than the original invoice value. The difference is a loss.
• These are typically recognized as separate GL entries (your administrator determines the accounts).

Accounting impact

When you record a multi-currency payment:

• The Cash or Bank account (in the payment currency) is debited with the amount received.
• The Accounts Receivable account (in the invoice currency) is credited with the converted amount.
• If the converted amount differs from the original invoice total, an Exchange-Rate Gain or Loss account is debited or credited for the difference.

Tips & common mistakes

• Exchange rates change daily. The conversion is calculated at the time the payment is recorded, not when the invoice was created.
• Exact match rarely occurs. Small exchange-rate differences are normal and are recognized as gains/losses.
• Overpayment/underpayment. If the converted payment amount exceeds or falls short of the invoice total, the invoice may remain partially unpaid or show a small credit. Review the status carefully.
• Forward conversions. If your system supports forward rates or locked rates, ask your administrator how they are applied.
• Documentation. Keep the original payment amount and exchange rate for audit and reconciliation purposes.

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