You can record an expense in any currency. See entering expenses in foreign currencies. Avaza then converts it in two ways:
- to your account currency, for reports, with the exchange rate saved on the expense;
- to the customer's currency, when the expense is billable and you add it to an invoice.
Your account currency is the Default Currency in Settings › General, and each customer has their own Currency. See how multiple currencies work.
To your account currency
Every expense in another currency saves an exchange rate from your account currency, for example 1 USD = 0.80 EUR. It's the market rate for the expense date, or your own rate if you changed it. Avaza converts with that rate:
amount in your account currency = expense amount ÷ exchange rate
For example, your account currency is USD. Marcus Lee pays EUR 60.00 for a taxi, and the expense is saved with the rate 1 USD = 0.80 EUR. In account currency it's USD 75.00. Reports show this in their (Base Currency) columns. The rate stays with the expense, so later rate changes don't affect it.
To the customer's currency
When the expense is saved
If the expense has a customer whose currency differs from the expense's currency, Avaza also saves a customer exchange rate. It's the market rate between the two currencies for the expense date, even if you entered your own rate for the account currency. It's worked out again when you change the date, currency or customer. Expense reports use it for their (Cust Currency) columns.
When you add it to an invoice
An invoice is in the customer's currency and has its own exchange rate from your account currency. When you click Add Expense on the invoice, Avaza works out each line like this:
The expense is in | The invoice line |
|---|---|
The customer's currency | The expense amount, not converted. |
Your account currency | The amount × the invoice's exchange rate. |
Another currency | Converted to your account currency with the expense's own rate, then to the customer's currency with the invoice's rate. |
For a third currency, the Add Expense window also offers Override Exchange Rate, for example 1 EUR = [ ] AUD. Enter a rate there to convert straight from the expense's currency to the customer's.
Continuing the example: Marcus's taxi is billable to Harbour Legal, who are billed in AUD. The invoice's rate is 1 USD = 1.5 AUD, so the EUR 60.00 expense becomes USD 75.00, then AUD 112.50. With an override of 1 EUR = 1.90 AUD, the line is AUD 114.00 instead.
Once the expense is on the invoice, Avaza updates its saved customer rate to match, so the expense reports agree with the invoice. The expense's currency, amount, date and exchange rate are then locked.
The Add Expense window lists each expense's Expense Amount, Markup Amount and Invoice Amount, so you can check the conversion before you add it. Administrators and Finance Managers can create invoices.
Markup and tax
- Markup from the expense category is added to the line. A percentage markup is a share of the expense amount. The + Fixed Markup Amount is in your account currency, so it's converted to the customer's currency along with the expense. See adding markup to expenses.
- Tax: on a Tax Exclusive invoice, the line starts from the amount before tax.
If an invoice line doesn't match your expense reports, see why expense amounts on invoices and reports differ. For invoices, credit notes and payments, see currency conversion in reports.