Turn on the currency
In the side menu, under Setup, choose Currencies, then pick your currency or press Turn on a currency (1). While your books are in one currency no currency field appears anywhere; it appears once a second one is on.
The books and reports stay in your books currency. The foreign currency shows on the document, and every entry is posted in the books currency at the document day's rate.
Enter the exchange rate
The rate is how many units of your books currency one unit of that currency is worth, so 3.75 means one dollar is worth 3.75. In the Add a rate card choose the currency, date and rate, then press Save rate (2).
A document takes the latest rate on or before its date. Currencies pegged to the riyal already have their rate; others show No rate until you add one. History lists every earlier rate.
Issue the document and collect
On the invoice choose the Currency and the exchange rate and its worth in the books appear. To collect a dollar invoice you need a bank or cash account held in dollars: open the account in Chart of accounts with the Bank subtype and choose its Currency. An account with postings cannot change currency.
If the rate moves between the invoice and the payment, the difference is recorded as a currency gain or loss by itself.
| Account | Debit | Credit |
|---|---|---|
| Bank (EUR 1,000 at 4.10) | 4,100.00 | |
| Receivables (EUR 1,000 at 4.00) | 4,000.00 | |
| Currency gain | 100.00 |
Watch what is still unpaid
The Currency exposure report in Reports shows open balances in each currency and what they are worth at the date you choose, against what the books carry. These are estimates and change no balance.
At year end run Foreign currency revaluation on the Year-end screen. Press Preview, then Post the revaluation; the entry reverses the next day.
