Glossary
Foreign currency
Definition
A foreign-currency amount is one written in a currency other than the euro. The books are kept in euros, so each foreign amount is recorded with its currency, its rate and the date of the rate. Gains and losses on exchange show up when the amount is paid.
Example. An invoice for £500 converted at the rate of its date is recorded in euros, and the rate and date are kept with it.
Why it matters for your company
Invoices in dollars or pounds must be converted before they reach your VAT and profit figures. Keeping the original amount, the rate and the date lets you prove the conversion later.
Where you see it in Sapita
On sales and purchase forms, where a currency other than EUR shows the converted euro amount next to it.