Cross-Currency Payments

You can pay invoices in any currency, irrespective of the currency on the invoice. With cross-currency payments you can make payments in the most stable currency or comply with legal regulations that prescribe payment in a specific currency.

• During invoice creation, your setup determines the default payment currency or you can manually select the payment currency, irrespective of the invoice currency.

• During payment creation, the cross-currency rate converts the invoice amount to the payment amount.

For example, you can make a payment in Euros for invoices created in Pounds Sterling.

This table lists the currencies and cross-currency rate information.

Invoice Currency	Payment Currency	Cross-Currency Rate
GBP	EUR	1.25

This table shows the conversion of the invoice amount to the payment amount using the cross-currency rate.

Invoice Amount	Invoice Amount * Cross-Currency Rate	Payment Amount
100 GBP	100 * 1.25	125 EUR

Benefits

With cross-currency payments you can:

• Manage your cross-border transactions effectively.

• Comply with legal regulations and make payments in the prescribed currency mandated by the country authorities for the resident supplier.

• Save costs by making payments in the most stable currency and avoiding losses due to currency rate fluctuations.

Conversion Rates

In addition to cross-currency rates, other conversion rates can apply when invoices and payments have different currencies. Following is the list of conversion rates:

• Invoice conversion rate: Converts the invoice currency to the ledger currency

• Cross-currency conversion rate: Converts the invoice currency to the payment currency

• Payment conversion rate: Converts the payment currency to the ledger currency

This table provides an example of the different conversion rates along with the converted transactions for a ledger currency of US dollars and an invoice entered in Pounds Sterling and paid in Euros.

Starting Transaction Amount	Type of Conversion Rate	From Currency	To Currency	Conversion Rate	Converted Transaction Amount
100 GBP	Invoice	GBP	USD	1.75	175 USD
100 GBP	Cross-currency	GBP	EUR	1.25	125 EUR
125 EUR	Payment	EUR	USD	1.45	181.25 USD

Setup

You can set up a default payment currency for:

• A supplier site on the Invoicing tab of the Supplier Site page.

• An invoice business unit on the Manage Invoice Options page.

Note: You can't update the payment currency on an invoice once you save the invoice.