Create a foreign currency bill, invoice, quote, purchase order or credit note

If you have a Business pricing plan with multi-currency, create transactions in a foreign currency. When you create the transaction, you can select the currency you want and edit the exchange rate, unit price, and tax rate.

How it works

  • Your base currency will show in the currency dropdown.
  • If the contact has a default currency or sales tax (and a transaction exists for them), Xero enters the defaults for you.
  • If you have contacts with a default currency or sales tax and a transaction exists for the contact, the currency dropdown updates to the contact’s default currency when you select their name.
  • If you copy an invoice, bill or quote, Xero uses the same currency for the original transaction. The rate only displays when you select a date.
  • If you're creating a new credit note for a specific invoice or bill, the credit will use the same currency as the original.
  • Xero adds inventory items in your organization's base currency. You can change the unit price and tax rate in the transaction if you need.
  • You can change the default tax rate for the account you choose to a rate that doesn't attract tax as determined by your local tax authority.
  • If you apply sales tax on a transaction, it's included in reports on the date of the transaction at the rate on that date. The value might change depending on currency variations but the sales tax amount will remain the same.
If you're unsure whether to record sales tax on an invoice or bill, ask your accountant or bookkeeper.

Before you start

Make sure your organization has a foreign currency added for your organization.

Create a foreign currency transaction

  1. Create the transaction:
  2. From the currency dropdown, select the currency you want. If it isn't available, click Add Currency to add a new one.

    Image of selecting a currency from the currency dropdown.

  3. (Optional) Edit the exchange rate
  4. (Optional) Adjust each item’s unit price and tax rate (if applicable) to apply to the selected currency.

    The amount of sales tax for items bought in another currency depends on what shows on the bill or credit note. It might be on a separate transaction from a customs or freight source.

    If you include sales tax on a transaction that's in another currency, Xero calculates the tax and shows it in the currency of the item. If the tax amount is converted to your base currency, Xero uses the exchange rate on the date of the invoice or bill.