Customers, vendors and bank accounts in other currencies (Multicurrency)

With Multicurrency, a customer or a vendor can have their own currency. A customer's invoices are in it, from the editor to the email, the PDF and the online invoice, and so are their payments; a vendor's bills and what you pay on them are in theirs. A bank or card account can be kept in another currency too. Your books and reports stay in your business's currency (the home currency), at each one's exchange rate.

Turn it on

1. 1Go to the gear menu › Account and settings › [Advanced](/settings/advanced).
2. 2Under Currency, tick Use other currencies for customers, vendors and bank accounts and press Save.

You can turn it off again while no customer, vendor or bank account has another currency.

Give a customer or vendor their currency

1. 1Open the customer from [Customers](/customers), or the vendor from [Vendors](/vendors) (or add a new one), and press Edit.
2. 2Choose their Currency, like EUR · Euro (under Payments for a customer, Additional info for a vendor), and save.

A currency can't change once they have transactions. For the same customer or vendor in two currencies, add them twice (for example Maple Ltd (CAD)).

Invoice them

1. 1Create an invoice and choose the customer: it says In EUR (Euro) under their name, and every amount is in euros.
2. 2Fill in the items and prices in their currency, as usual.
3. 3Under the total, Exchange rate shows what 1 euro is worth in your currency on the invoice date, from the European Central Bank's daily reference rates, and the total in your currency. Change it to your bank's rate if you like.
4. 4Save and send. The invoice, its email, PDF and online page are all in euros.

Your books get the invoice at its rate: for example, €1,000.00 at 1.10 puts $1,100.00 in Accounts Receivable and your income.

Record their payment

1. 1On the invoice, press Record a payment (or use Create › Receive payment for several of their invoices).
2. 2Enter what they paid in their currency and the date.
3. 3Check the Exchange rate for the day it was paid (filled in for you) and choose the account the money went into. It shows what came in, in your currency.
4. 4Press Save payment.

If the rate moved between the invoice and the payment, the difference is an exchange gain or loss, recorded for you in the Exchange Gain or Loss account (an other expense: a gain lowers it). In the example, if the customer pays €1,000.00 when it's worth $1,120.00, that's a $20.00 gain. The invoice is paid in full either way, and Accounts Receivable comes back to exactly zero.

The deposit in your bank feed matches the payment's amount in your currency, so Match it in Bank transactions as usual. Payments put in Undeposited Funds go to the bank deposit at what came in.

Paid online, in their currency

With online payments set up, an invoice in another currency has Pay on it too, in its email and online. The customer pays in their currency, by card (bank payments are only in your currency). Stripe converts it into your currency, and TallyPip records what reached your Stripe balance: for example, €1,000.00 that came to $1,120.00 pays the invoice in full, with a $20.00 exchange gain against the $1,100.00 it was booked at. Stripe's fee is in your currency.

• Charge a card over the phone works the same way, in the invoice's currency (how).
• Automatic payments on a recurring invoice in another currency save a card (not a bank account), and each invoice is charged in its currency (how).
• Part payments (if you allow them) start at what 50 cents of your currency comes to in theirs (€0.45 at 1.10, say).
• A refund you make in your Stripe Dashboard is recorded as a refund receipt at what it took out of Stripe balance (Stripe converts it at that day's rate).

Record a vendor's bill

1. 1Create a bill and choose the vendor: it says In EUR (Euro) under their name, and the amounts are in euros.
2. 2Fill in the lines as usual, in their currency.
3. 3Under the total, check the Exchange rate for the bill date (filled in for you, or type your own) and the total in your currency, then Save bill.

Your books get the bill at its rate, every line converted, adding up exactly to what goes into Accounts Payable. Items with stock come in at that cost in your currency.

Pay a vendor's bill

1. 1Open the bill and press Pay bill.
2. 2Enter what you paid in their currency and the date, check the day's Exchange rate, choose the account it came out of, and save. It shows what left your account in your currency.

If the rate moved, the difference goes to Exchange Gain or Loss: paying out more in your currency than the bill was booked at is a loss, less is a gain. Accounts Payable comes back to exactly zero. Match the withdrawal in Bank transactions to the payment as usual. Pay bills (several at once) is for bills in your currency; pay each bill in another currency from its own page. Expenses and checks are in the currency of the account they're paid from (see below).

Keep a bank or card account in another currency

For a bank account in euros, a card billed in pounds or a Canadian dollar savings account. Add it in Bank transactions with its currency; its statements, balance and reconciliations are in that currency, and your books hold what it's worth in yours.

1. 1Go to [Bank transactions](/banking) and press Add account (with Multicurrency on).
2. 2Fill in the name and kind as usual, choose its Currency, like EUR · Euro, and press Add account. The currency can't change once it has transactions.
3. 3Upload its statements (CSV or PDF) or add transactions by hand, as for any account. Amounts are in its currency.
4. 4Post them as usual. Each one goes into your books at the European Central Bank's rate for its day: for example, €500.00 at 1.10 is $550.00 of income. The first time a day is needed, its rate is looked up and kept, so every transaction that day uses the same one.

Its card on Bank transactions shows the balance in its currency, and what it's worth in your books underneath. In the chart of accounts it has its currency beside its name, and the balance there (and in every report) is in your currency.

Change a day's rate (Exchange rates)

1. 1Go to Accounting › [Exchange rates](/accounting/exchange-rates) (owners, admins and accountants). It lists the rate kept for each currency and day, and where it came from.
2. 2Press Change beside a day (or pick the currency and day), type your bank's rate, and press Save rate.

Transactions posted for that day from then on use it; ones already in your books keep the rate they were posted at (undo and post one again to use the new rate). If a day's rate can't be looked up, posting says so: type it in here, then post again.

Payments, bills and transfers with that account

• A customer pays into it: record the payment on their invoice (in the same currency) and choose the account under Deposit to. The money arrives in its currency; your books take it at the day's rate, with any exchange gain or loss as usual. A deposit in its bank feed is offered the open invoices in its currency, and Match records the payment at the day's kept rate.
• You pay a vendor's bill from it: the same, for bills in its currency (Pay bill, or Match a withdrawal to the bill).
• Moving money between accounts in different currencies (dollars to the euro account, say): use Create › Transfer. Choose the two accounts, enter the Amount sent and the Amount received; the rate they imply is shown. Your books take the side in your currency. When the two banks show it, each side is matched to the transfer. Between two accounts in the same other currency, it's one amount, at the day's rate.
• A bank transaction can't be filed under an account in a different currency (like the dollar account from the euro one): record it as a transfer with both amounts instead.
• Reconcile it as usual (Transactions › Reconcile), with the statement's balances in its currency. A first statement's beginning balance goes in at the rate of the day before it.

Revalue at the month's end (Home currency adjustment)

What customers owe you, and you owe vendors, in another currency is in your books at each invoice's and bill's own rate, and a bank or card account in another currency at each of its transactions' rates. When rates have moved, a home currency adjustment shows them at the month-end rate on your balance sheet.

1. 1Go to Accounting › [Home currency adjustment](/accounting/currency-adjustment) (owners, admins and accountants).
2. 2Choose the day, usually the last day of the month. It lists what was open in each currency then: in that currency, in your books, and at the day's rate.
3. 3Check each Rate (filled in with the European Central Bank's rate for the day; use your bank's if you prefer). The table shows the unrealized gain or loss.
4. 4Press Post the adjustment.

What customers and vendors owe is posted on that day to Receivables revaluation and Payables revaluation (beside Accounts Receivable and Payable, so the aging reports still match them) and Exchange Gain or Loss, and reversed the next day. So the month's balance sheet and profit and loss show the month-end value, and when the customer or vendor pays, the gain or loss is still worked out from the invoice's or bill's own rate.

Each bank or card account in another currency is revalued too: its balance in its currency at the day's rate, posted to the account itself and Exchange Gain or Loss. That one isn't reversed, so the account stays at the month-end value and next month's adjustment starts from there (its balance in its own currency doesn't change, and there's nothing new to reconcile). Because they build on each other, adjustments that revalue accounts go in date order: undo a later one before an earlier one.

Cash-basis reports leave adjustments out. One adjustment a day; Undo removes it (and its reversal) while the books are open.

Estimates, receipts, credits and recurring invoices

Every sales form for a customer in another currency is in their currency, like their invoices:

• Estimates have an Exchange rate too (filled in for the estimate's date). Nothing goes in your books, but the rate puts estimate totals across customers in your currency. Turning one into an invoice uses that day's rate (you can change it on the draft).
• Sales receipts and refund receipts take the day's rate. The money goes into (or comes out of) an account in your currency at that rate, or a bank or card account kept in the customer's currency.
• Credit memos take their day's rate and go only on that customer's invoices. When a credit at one rate pays part of an invoice at another, the difference goes to Exchange Gain or Loss, as with a payment. Taking the credit off the invoice (or deleting it) takes that back out too.
• Delayed charges and credits are in their currency; adding them to an invoice puts them in at the invoice's rate.
• Recurring invoices are in their currency; each invoice they make gets the European Central Bank's rate for its own date (kept in Accounting › Exchange rates, where you can change a day's rate before it's made).
• Write-offs take off what's left at the invoice's own rate, so there's no exchange difference. Late fees are added in the invoice's currency: a percentage of what's owed, or your flat fee at the invoice's rate.

Vendor credits, purchase orders and recurring bills

Every purchase form for a vendor in another currency is in their currency, like their bills:

• Vendor credits have an Exchange rate for their date (filled in for you). The credit goes into your books at that rate, and only on that vendor's bills. When a credit at one rate comes off a bill at another, the difference goes to Exchange Gain or Loss: for example, €100.00 of credit at 1.20 ($120.00) on a bill at 1.10 takes $110.00 off the bill, a $10.00 loss. Removing it from the bill's payments (or deleting the credit) takes that back out too. A credit already used on a bill can't be changed.
• Purchase orders have an Exchange rate too. Nothing goes in your books, but the rate puts order totals across vendors in your currency. Turning one into a bill uses that day's rate (you can change it on the bill before you pay it).
• Recurring bills are in their currency; each bill gets the European Central Bank's rate for its own date (kept in Accounting › Exchange rates, where you can change a day's rate before it's made). Scheduled sales receipts for a customer in another currency work the same way.

Expenses, checks and deposits on an account in another currency

1. 1Create an expense or a check and, under Paid with, choose the account kept in another currency (it shows its currency beside its name, like Euro account (EUR)). The form says In EUR (Euro) and the amounts are in euros.
2. 2Fill in the lines as usual, in that currency.
3. 3Under the total, check the Exchange rate for the day (filled in for you, or type your bank's) and the total in your currency, then save.

Your books take every line at that rate, adding up exactly to what left the account, and the account keeps the amount in its own currency, so the bank's withdrawal matches it in Bank transactions. A recurring expense from that account gets each day's rate.

A bank deposit into an account in another currency (Create › Bank deposit, then that account under Deposit to) is in its currency, at the day's rate, like its bank transactions. Payments waiting in Undeposited Funds are in your currency, so they go into an account in your currency.

In your lists and reports

• A customer's or vendor's page, a customer's statement, and their rows in the Customers, Vendors, Invoices, Bills, Vendor credits, Purchase orders, Sales transactions and Expense transactions lists are in their currency. An expense or deposit on an account in another currency is in that currency.
• Totals across customers and vendors (the money bars, the dashboard, the overviews, aging reports, the 1099 summary, the profit and loss and every other report) are in your currency, at each one's rate, so they match your books.
• An invoice's or bill's page shows its rate and what it is in your books, and each payment what came in (or went out) and any gain or loss.

Not for other currencies yet

• Billable time goes on invoices in your currency.
• An account in another currency is for its bank transactions, invoice and bill payments, receipts, expenses, checks and deposits in its currency, and transfers. Sales tax payments, paying back expense claims, journal entries by hand, receipts turned into expenses, recurring transfers and payouts from Stripe, Etsy and sales channels use accounts in your currency.
• Connected bank feeds and imported opening balances are for accounts in your currency; start an account in another currency from its first statement (its beginning balance when you reconcile it).
• The rates come from the European Central Bank, for about 25 currencies with cents (not the yen or won yet).