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How do I handle a vendor billing in a foreign currency?

Give the vendor its Currency. Invoices take that currency and the rate for the exchange date. Pay in the same currency: the payment clears at the invoice's rate and posts the difference as exchange gain or loss.

Screen
Vendor Invoice, Payment
Who
The payables clerk
Takes effect
On save
Needs first
Exchange rates in Currency Conversion

Before you start​

  • The rate exists for the dates.

Steps​

  1. Set Currency on the vendor.
  2. Invoice it; check Exchange Rate. A foreign vendor's against-receipt invoice takes the shipment's currency and rate.
  3. Pay with a Payment in the same currency. Only invoices in the payment's currency are listed. Payment Currency says whether the through lines are typed in the company currency or the document currency.

Check it worked​

  • The payment voucher has an exchange gain or loss line when the rate moved.

If something looks wrong​

  • "Exchange Rate cannot be zero" No rate for that date.