How-to
How do I handle invoices in a foreign currency?
By Tim White · Last updated
To handle a foreign-currency invoice, first make sure the currency and amount are captured exactly as printed, including European number formats where the comma and period are swapped. Then apply your own rule for which exchange rate and date you record it at, since the invoice states an amount, not what it costs you in your home currency. Keep the original amount beside the converted one so the record ties back to the document.
1. Capture the currency, not just the number
A total of 1.142,40 euros is not 1,142.40, and reading it as the latter is a real error. The currency symbol and the number format both matter. InvoiceJet reads the currency and handles European number and date formats, so the figure lands correctly.
2. Decide your exchange-rate rule
Pick one consistent basis and stick to it: the rate on the invoice date, the rate on the payment date, or the rate your accounting tool applies. InvoiceJet extracts the printed amount and currency, it does not set an exchange rate, so this rule stays yours to define.
3. Record both amounts
Keep the original currency amount and your converted figure together. That way the entry reconciles both to the document and to your bank statement when the payment clears at whatever rate your bank used.
Common questions
Does InvoiceJet convert the currency for me?
No. It captures the currency and amount as printed. You apply your own exchange rate and date, since those depend on your accounting rules.
Why do European invoices look wrong at first glance?
The comma and period are swapped from the US convention, so 1.142,40 means one thousand one hundred forty two and forty cents. The tool handles that format.
Sources
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