Set up to do business in other countries
Multi-currency invoicing and banking is available only to Sage Accounting Plus subscribers. If you don’t have it, find out about the benefits of upgrading to premium features and growing your business with Sage Accounting.
To do business in other countries, you’ll need to set up your invoicing and banking for multiple currencies.
Watch an 8 minute video on how to use multi-currency banking in Sage Accounting Plus.
Before you can use multi-currency invoicing, you need to enable multi-currency transactions. This will allow you to set home currencies for your customers so that new invoices default to that currency.
You also need to choose which nominal accounts to record any bank charges, interest, exchange rate gains, or losses in. This ensures we can account for these on your VAT return and other financial reports.
Turn on multi-currency transactions
Go to Settings, then Business Settings and Financial settings.
Select Currencies and select Enable foreign currency transactions.
Optionally, choose whether to apply Live exchange rates from the European Central bank (ECB). Here’s how it works when it’s turned on or off:
Live exchange rates turned on
Rates are automatically updated as they change, so you will always have the latest rate. You don’t need to enter them manually.
Live exchange rates turned off
You’ll need to get the latest rates from ECB yourself and manually enter them. You’ll also need to make sure that you keep them updated with the latest exchange rates.
Three currencies are automatically created for you, Euro (EUR), Pound Sterling (GBP) and US Dollars (USD). You can’t delete your base currency, Pound Sterling (GBP), or a currency that’s in use.
Add new currencies from the drop-down list as needed.
Set up multi-currency nominal accounts
Check the Bank charges and interest nominal account is correct. By default, this is the same account used for your domestic invoices.
Check the Exchange rate gains and losses ledger accounts are correct. The nominal accounts you choose for these options will show your gains or losses (from changes in the exchange rate) on reports. The standard chart of accounts in Sage Accounting includes the Exchange rate gains and losses nominal account, but you can change it as needed.
Customer and supplier currency settings
To use multi-currency invoicing, you need to set the default currency on your contacts. When you create an invoice, it automatically uses the default currency set for that customer or supplier.
Set currency settings on a contact
Go to Contacts, select either Customers or Suppliers.
Select your customer or supplier from the list.
Go to Options and Account details to view the currency.
After viewing the currency settings in Account details, select the pencil icon to edit.
Select the new currency from the drop-down list. You won’t be able to do this if there are existing transactions for the contact. Instead, create a new contact for them with the new currency.
With multi-currency invoicing, you’ll also want to add multi-currency bank accounts for payments, revaluations (also called conversions), and other transactions. Multi-currency bank accounts cannot be used with cash accounts.
Adding them is the same as adding an account in your base currency. Just select the currency you want in the Currency field.
Once you’ve saved it, the account will show on the Banking page. The balance will show in the selected currency with your base currency underneath it.
Bank feeds are not available for bank accounts in other currencies.
Creating multi-currency transactions
Once you’ve added a foreign bank account, you’re ready to process multi-currency transactions. Your sales and purchase documents will show the default currency of the contact and the exchange rate used. You can also change the currency view by toggling between the foreign currency and your base currency.
Once you select Record Payment you can choose which bank account you want to record the payment to. The selections will include your base currency accounts and an account that matches the foreign currency on the invoice.
Working with bank accounts in other currencies
When doing business with other countries, you may need to update transaction exchange rates. To do this, select the relevant bank account on the Banking page to open it. A list of transactions show on the Activity tab at the bottom of the page. Here you can review each transaction, including the amount received in both currencies.
Use the Currency view buttons to see your transactions in the currency of the account or your base currency.
Revalue a bank account
Revaluing refers to a change in the value of your base currency due to changes in the exchange rate. This is completed monthly or quarterly when needed.
Revalue an account
Open the relevant bank account.
Open the Revaluations tab and select Revalue this bank account.
Select the date you want the balance to be revalued on.
The exchange rate automatically populates but can be changed manually.
A loss or gain is shown as a difference. For example, a balance of £100 revalued at a rate of 1.18 would show as a loss of -£2.25.
The difference will post to the Exchange rate gains and losses ledger account and will appear on your Profit and Loss Report as an overhead.
Add a reference for audit purposes, for example month end revaluation.
Once you’ve completed the revaluation, details of all revaluations are shown in the revaluations tab. If you notice any errors, you can delete the entry and complete the revaluation again.
It’s common practice for businesses who deal with foreign currencies to make transfers between their accounts. We’ve made this easier by enabling bank transfers between base currency accounts and foreign currency accounts.
Help with multi-currency invoicing or banking
Recurring invoices can't be used with foreign currency.
Find out how to add an opening balance to a bank account.
Bank feeds are not yet available for bank accounts in other currencies.
All revaluation details are shown in the Revaluations tab. If you notice any errors, you can delete the entry and complete the revaluation again. If you delete an entry, we recommend that you complete new revaluations on entries shown after this date.