Multicurrency invoice

A multicurrency invoice is a document indicating the sale or purchase of a good or service in a foreign currency. In international trade it is common to have to make (and receive) invoices in foreign currencies with customers outside the euro area.

Requirements for multicurrency invoicing

In order to issue a multicurrency invoice, the following requirements must be taken into account:

The invoice amount must clearly state the currency agreed for the transactions.
The ISO code must be stated (EUR for Euro, GBP for GBP, USD for USD, etc.).
The exchange rate of the day, i.e. the date of issue of the invoice, must be shown. The exchange rate is set by the European Central Bank.

What do I have to take into account when invoicing in multicurrency?

When trading in another currency, the following aspects must be taken into account with regard to the invoicing and accounting of your business:

You have to agree in advance with the customer in which currency you want to invoice.
The transaction must be recorded in that currency and the exchange rate must be indicated.
Although the General Accounting Plan allows accounting in another currency, taxation must always be done in the currency of the country.
The exchange rate of the currency often differs between the date of issue of the invoice and the date of receipt of payment. This will always lead to a mismatch in the accounting that has to be adjusted at the end of the accounting year.

With our invoicing software you will have at your disposal multi-currency invoice templates that already take into account the time lag caused by the variability of the exchange rate between the date of issue of the invoice and the date of receipt of payment.