Multi-Currency Support for Foreign Currencies

This feature enables you to create and manage foreign currencies, set their exchange rates, and assign them to customers and suppliers. It simplifies your financial transactions and gives you greater flexibility when dealing with multiple currencies.

1. Creating and Managing Foreign Currencies

Steps to Add:

1. Go to Settings > Foreign Currencies

2. Click Create Currency

3. Fill in the required information:

   • Currency: Select the currency you want to add, such as the dollar or euro

   • Realized Gains and Losses Account:

     • Used when the transaction is fully completed.

     • Example: You bought goods in dollars, paid the full amount, and recorded the currency difference that occurred between the purchase date and payment date.

     • The difference goes here because it has been realized and is complete.

     • Nature of the account in the chart of accounts: Expense Account

   • Unrealized Gains and Losses Account:

     • Used when you have a currency difference but the transaction is not yet completed.

     • Example: You have a dollar invoice that you haven’t paid yet and the exchange rate has changed.

     • The system calculates the difference and stores it here as an unrealized loss or gain because it may change before you pay.

     • It falls under Equity, because it has not been realized yet.

     • When you sell the goods or pay off the loan, we transfer the amount from this reserve to the actual profit or loss account.

   • Exchange Rate: Enter the current exchange rate for the currency against the base currency in the system (usually the Riyal)

4. After filling in all the information, click Save.

5. After that, you can use the new currency directly in invoices, quotes, purchase orders, and transactions.

Modifications After Adding:

• Modify the accounts linked to gains and losses: Click Edit next to the currency

• Change the exchange rate for unpaid transactions: Click Edit Rate, and select the transactions whose rate you want to change

• Delete the currency: Use the Delete option if there are no transactions on the currency.

• You can view the transactions made in this currency and the exchange rates: Click View next to the currency

2. Assigning Currencies to Customers and Suppliers

• From the customer or supplier information, click Edit and select the currency assigned to them

• If you don’t select any option, the system will automatically use the base currency

• The system applies the currency when creating invoices in the “Documents” tab or documents for the customer/supplier

3. Modifying Exchange Rates During Transactions

• When creating a sales invoice or receipt, change the currency from the Currency field under the customer’s name

• At the end of the invoice, the following appear:

  • Total (in foreign currency)

  • Grand Total in base currency

• When paying the invoice or creating a customer/supplier document, you can modify the exchange rate, and the change will take effect immediately on the document value

• Confirm the amount before saving

4. Monitoring Realized Gains and Losses

• The system calculates any difference between the exchange rate at the time the document was created and the current rate

• You can view the reflected entry in Reports > Journal

• The difference goes directly to the Realized Gains or Losses account that you specified when creating the currency

• You can track the impact of currency fluctuations on your financial data clearly

5. Benefits

• Precise and easy financial management for multi-currency transactions

• Flexibility in adjusting exchange rates at any time

• Clear tracking of gains or losses resulting from currency differences

6. Issuing Invoices in Foreign Currencies and Submitting Them to ZATCA

You can issue your invoices in foreign currencies, such as euros and dollars, and submit them to ZATCA in a correct manner that is fully compliant with all requirements.

What happens automatically when you issue an invoice in a foreign currency?

• The invoice is issued in the specified foreign currency, and all amounts and prices appear in the currency you selected.

• VAT is calculated and sent in Saudi Riyals to ZATCA based on the exchange rate saved on the invoice at the time of its creation, without any impact on the invoice amounts in foreign currency.

• All amounts in foreign currency are rounded to two decimal places in accordance with ZATCA’s approved rule, ensuring accuracy of figures and safe transmission.

• The currency code is validated and verified for compliance with internationally adopted standards (ISO 4217) before the invoice is sent.

Important Notes:

• Invoices issued in Saudi Riyals work as usual without any changes.

• The exchange rate used in the calculation is the rate saved on the invoice at the time of its creation, and is not affected by any subsequent changes to the settings.

7. Important Notes

• This feature works for all customers and suppliers who deal with different currencies.

• The foreign currency feature is available for all plans, and if it’s not showing for any user, you should verify that the permission is available for that user. You can do this by going to Settings, then Users, then selecting Manage Roles from the top options, and clicking Edit next to the user’s role to verify that the “Foreign Currencies” option is available for that role.

• Exchange rates can only be modified while creating invoices and receipts, not directly in journal entries

• When creating journal entries, the system allocates the exchange rate difference to the Realized Gains or Losses account, providing a clear view of the impact of fluctuations on your financial data

The currency symbol appears automatically on the invoice. For example, if the invoice is in dollars, you’ll see the dollar sign next to the figures, and so on.

You cannot add an automatic line item that shows the currency type being used, but you can add a line item yourself using Additional Fields and fill it in manually on the invoice.

How to Add:

1. Go to Settings > Additional Fields.

2. Select the service type, for example Sales Invoices and Credit Memos.

3. Click Add New Field, name it “Currency Type” or any name that suits you, and then Save.

After that:

1. Go to Invoice Designer.

2. Add the new additional field to the invoice using the three dots in the toolbar.

3. Click on Additional Fields and select the field you created.

• Training Courses: https://www.youtube.com/watch?v=Was8Xcq1z3w&t=47s
  Here is a training course that explains the foreign currency feature, which includes:

  How to add currencies and set their exchange rates
  View the foreign currency and related documents
  Add a customer and assign a currency to them
  Add a supplier and link them to the customer
  Create a purchase invoice by selecting a supplier that uses a different currency
  Create a sales invoice by selecting a customer linked to a supplier
  Pay a sales invoice with a purchase invoice if it’s for the same customer/supplier
  Pay an invoice at a different exchange rate than the rate at the time the invoice was created (change the exchange rate at the time of payment)

• Here is a practical video tutorial that shows how to add and use a foreign currency in the system

  https://app.storylane.io/share/iaw1wrykxr5z

• There is no limit to the number of foreign currencies that can be added.

Search Keywords:
How do I record currency conversion transactions from Riyal to Euro?

Add a currency in Settings

If I want to create a purchase order in Dirhams