Invoice in a foreign currency

You can invoice a customer in a currency other than pounds, and Kontala handles the conversion for you.

Choose the currency

When you create the invoice, pick the Currency on the invoice form. The picker offers the currencies Kontala holds daily exchange rates for, so every foreign invoice can be converted automatically. The currency cannot be changed once the invoice is sent, only while it is a draft.

How amounts convert

You enter unit prices in the invoice currency, and picking an Item converts its catalogue price into that currency for you. Kontala books the invoice at the daily exchange rate for the invoice date, and the invoice shows that rate along with the equivalent net, VAT, and total in your home currency.

Sales in a foreign currency are often outside the scope of UK VAT, so new lines on a foreign-currency invoice default the VAT rate to 0%. You can still choose any rate per line - if you are unsure what applies, check with your accountant.

Gains and losses

Exchange rates move between invoicing and getting paid. While a sent foreign-currency invoice is outstanding, it shows a Currency Gains/Losses panel comparing its value at the invoice-date rate with its value at today's rate - the unrealised gain or loss.

When the customer pays and you record the payment from your bank, Kontala works out the final difference and records the gain or loss in your books automatically. For how these differences appear in your accounts, see Foreign currency and FX.