Receiving payment in a different currency

If your customer pays in a currency that is different from the currency of the original invoice, Usystems will use an exchange rate to convert the payment to the invoice currency. This ensures your invoice balance is calculated correctly.

Before you start

• The customer's invoice is in one currency (for example, USD).
• The customer is paying in a different currency (for example, AFN).
• You have the current exchange rate between the two currencies, or you trust Usystems to use the rate from the payment date.
• Know which bank or payment account the money is going into.

How multi-currency payment works

When you record a payment in a different currency:

1. Usystems looks up the exchange rate for that currency pair on the payment date.
2. It converts the payment amount to the invoice currency using that rate.
3. It records the actual amount paid (in the original payment currency) in your general ledger.
4. It reduces the invoice balance by the converted amount.

Example: An invoice for 100 USD is due. The customer pays 12,000 AFN (Afghan Afghani) on a day when the rate is 1 USD = 120 AFN. Usystems converts 12,000 AFN to 100 USD, marks the invoice as paid, and records both amounts in the ledger.

Steps

1. Go to Payments → New Payment Open in Usystems

2. Select the Customer.

3. In the Currency field, choose the currency the customer is paying in (if it is different from the invoice).

4. Enter the Amount in that currency.

5. Choose the Account (cash, bank, etc.) where the money is going.

6. The Payment Date defaults to today. The exchange rate is looked up for this date. You can change the date if the payment was received on a different day.

7. If the exchange rate is not shown or seems wrong, you can manually enter it in the Exchange Rate field. Otherwise, leave it blank and Usystems will use the default rate for that date.

8. Scroll down to the Invoices section and select the invoices this payment covers.

9. Click Save. Usystems will show you a summary of how much of each invoice has been paid in the invoice currency.

Accounting impact

When you save a multi-currency payment, Usystems records:

• Debit the payment account (cash, bank) in the payment currency — this is the actual money received.
• Credit the customer account in the invoice currency — this reduces what they owe you.
• A currency conversion entry in the general ledger if there is a gain or loss on the exchange rate.

For example, if the actual exchange rate moved between the invoice date and the payment date, the difference may be recorded as a small gain or loss.

Tips & common mistakes

• Exchange rate source: Usystems uses the rate set up in your system for each currency pair on the payment date. If your rate differs from your bank's rate, contact your administrator to update the exchange rate table.
• Partial payments: A payment in a different currency may cover only part of an invoice if the converted amount is less than the invoice total. The invoice will show Partially Paid.
• Manual override: If you know the correct exchange rate and the system has the wrong one, you can enter it manually in the Exchange Rate field before saving.
• Gain or loss: Small gains and losses on currency conversion are normal. Your accountant will review these and may need to post them to a forex gain/loss account.

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