What is foreign currency? Meaning and explanation

When an invoice or payment is in a currency other than the euro, the amount must be converted in the books. An exchange rate is used for this, usually the rate on the invoice date. If the invoice is paid later at a different rate, an exchange difference arises that is booked separately. For VAT purposes, an amount in foreign currency must also be converted to euros.

For a firm, foreign currencies make both booking and matching harder. Because of exchange differences and bank charges, the amount on the bank statement does not exactly match the invoice, so matching on amount fails. Clients with international suppliers, such as software subscriptions in dollars, therefore create a lot of manual work in conversion and reconciliation.

Autoboeker detects foreign currencies during processing, with optional automatic conversion, for all four connected packages. In bank matching for Exact Online, Twinfield and SnelStart, foreign currencies are matched too. Client questions also work for foreign payments and documents, and the prompt library contains example instructions for currencies and international situations.