Documents can be raised in a currency other than your base, with the exchange rate captured right on the document. It is the shared widget that lets you sell and buy abroad without leaving your home books behind.
What you will learn
- What the per-document currency widget does
- Why the rate is captured on the document
- Where the deeper multi-currency mechanics live
Currency on the document
Where multi-currency is enabled, a document carries a currency selector and an exchange rate. Raise an invoice in USD and the document records both the foreign figures and the rate used, so its value in your base currency is fixed at the moment of the transaction.
The rate travels with the document
Capturing the rate on the document is the key idea: it pins the base-currency value at the deal's date, so later movements in the exchange rate do not rewrite history. The document always knows what it was worth when it happened.
The accounting side. How foreign balances are then revalued at period end, and how FX gains and losses are posted, is the Finance topic, see Multi-currency. This page is just the shared per-document widget; the ledger mechanics live in Finance.
Related
- Reference: Multi-currency (the accounting depth)
- Reference: Chart of Accounts (rate and revaluation modes)