Multicurrency - fixing the payment value & exchange rate on payment date

In the system, you have the option to work with multiple currencies in addition to the account's default currency. Whenever a foreign currency payment or invoice is recorded, its value must be converted into the default currency.

There are two options for handling foreign currency payment amounts, which you can configure in the system. To select one, go to Settings > Invoice > Custom Currency and find the option named Fix payment value & exchange rate on payment date.

This toggle setting affects the timing of exchange rate and payment value calculations, particularly in relation to invoices and outstanding balances in the Folio. Here’s a breakdown:

• When the toggle is active (default setting):

  • The payment’s value and exchange rate are fixed at the time the payment is registered.
  • This means the exchange rate used is based on the payment date.
  • The outstanding balance in the Folio is calculated using the amount shown in the "Amount in /% default currency %/ on payment date" column.

• When the toggle is inactive:

  • The payment’s value and exchange rate are not fixed immediately.
  • Instead, they are determined when the payment is linked to a prepayment invoice or invoice.
  • The exchange rate is based on the invoice’s fulfillment date (not the payment date).
  • Until the payment value is fixed, the outstanding balance in the Folio is calculated using the "Amount in /% default currency %/ on current day" column.

In short, the toggle controls when the exchange rate and payment value are locked in—either at the time of payment (active) or at the time of invoicing (inactive).