Understanding Foreign Currency Invoice Entry

You use the Standard Invoice Entry program (P03B11) to enter invoices in a foreign currency. You can assign a currency code at the time you enter an invoice, or let the system assign the default currency code from the customer record.

When you enter an invoice, the system multiplies the foreign gross amount by the exchange rate to determine the domestic gross amount. The default exchange rate is from the F0015 table. You can override this rate when you enter the invoice.

For foreign currency invoices, the currency of the company for the accounts receivable trade account must be the same as the base (domestic) currency of the invoice. For example, a U.S. company enters a foreign invoice in Canadian dollars. The domestic currency of the invoice is USD; therefore, the currency of the company for the accounts receivable trade account must also be USD. If the currency of the company for the account assigned to AAI item RC is different from the domestic currency of the invoice, you receive an error message Trade Account Currency Incorrect and cannot continue entering the invoice.

Note: You can use the Speed Invoice Entry (P03B11SI) program to enter an invoice in a foreign currency. However, unlike the Standard Invoice Entry program, you cannot use the Speed Invoice Entry program to enter the domestic side of a foreign currency invoice. This is because the Speed Invoice Entry program does not allow you to clear the Foreign check box, which would indicate that you are entering the domestic side of the invoice.