Create a foreign currency bill, invoice, quote, purchase order or credit note
If you have a Business pricing plan with multi-currency, you can enter invoices, quotes, bills, credit notes and purchase orders in Xero in a foreign currency.
Before you start
- Make sure that your organisation is on a pricing plan that includes multi-currency (Xero website).
- Check that the foreign currency has been set up in your organisation. If not, a Standard or Adviser user can add a new currency.
Add a new transaction and update the currency fields
Adding a foreign currency transaction is largely the same as adding a transaction in your base currency. The main difference is that you can select a different currency and edit the exchange rate (if required).
Create a new transaction
- Add an invoice
- Create a quote
- Add a bill
- Create a purchase order
- Create or edit a repeating invoice or bill
- Add a credit note for a customer or credit a sales invoice
- Add or edit a credit note from a supplier or credit a bill
Select a currency
Your base currency will automatically display in the new transaction, click the currency field to select a new currency. If the currency you want to use isn't available and you're a Standard or Adviser user, click Add Currency, to add a new currency.
- If you've entered a transaction for a contact before, when you select their name the currency field will automatically change to the default currency saved for them.
- If you copy an invoice, copy a bill, or copy a quote, it will be in the same currency as the original item but no rate will display until you've selected a date.
- If you're adding a new credit note, you can choose the currency for the credit note. However, if you are crediting a specific invoice or bill, the credit note will automatically be in the same currency as the original item.
Change an exchange rate
- You can edit the exchange rate on the transaction. You may like to edit the rate if the transaction is future-dated or if you have a specific rate from your bank that you need to match to a payment.
Update the price of an inventory item
- Inventory items are added in an organisation's base currency. After choosing an inventory item, adjust the unit price and tax rate (if applicable) so it applies to the currency you're invoicing or billing in.
Set the VAT
- You can change amounts to be Tax Exclusive, Tax Inclusive or show No Tax. You can also change the default tax rate for the account you've chosen to be a rate that doesn't attract tax as determined by your local tax authority.
- VAT on items you've purchased in another currency will depend on what is on the bill or credit note from your supplier. Sometimes tax might be included on it, other times on a separate bill or credit note from a customs or freight source.
- If there is any VAT on an item, it is recorded on the transaction and included in reports on the date of the transaction at the rate on that date. The value of invoices, bills and credit notes might rise and fall depending on currency fluctuations but the VAT amount will remain the same.
- If you have particular customers or suppliers that you always transact with in a foreign currency, enter a default currency and VAT that will always be used when you enter an invoice, quote, bill, credit note or purchase order for them.
- If you do include VAT on an invoice, quote, bill, credit note or purchase order that's in another currency, the tax amount will be calculated and displayed in the currency of the item. Wherever the tax amount is converted to your base currency it will be done so using the exchange rate on the date of the invoice or bill.