Foreign Currency in Payment Applications
Payment applications, expenses, and contracts can be entered and managed in foreign currencies. This allows you to work with international suppliers and maintain accurate financial records in their local currencies while automatically converting to your project's base currency.
In this article:
- Set Up Foreign Currency
- Foreign Currency in Cost Payment Applications
- Foreign Currency in Expenses
- Foreign Currency and Overbilling
- Foreign Currency in Document Generation
- Exchange Rate Management
- Best Practices
- Related Articles
Set Up Foreign Currency
Before working with foreign currency payment applications, you need to set up a foreign currency on the contract and associate it with the payment application or expense.
Foreign Currency in Cost Payment Applications
Cost payment applications can be entered and managed in foreign currencies for international suppliers.
Working with Foreign Currency Cost Applications
To work with foreign currency cost payment applications:
Select the Cost tool and switch to the Cost Payment Application tab.
Open the details view for the appropriate supplier payment application.
Send the payment application to your foreign suppliers.
In the cost payment application's list view, values are shown in the base currency. Hover over the 
icon to see the converted values and the current exchange rate.
Edit Exchange Rates in Cost Applications
To edit the exchange rate:
Open the detailed view of the cost payment application.
Click the name of the cost payment application to open the flyout.
Edit the exchange rate. It can be edited at any time except at the In Review, Paid, or Approved status. Learn more about payment application statuses.
In the detailed view of the cost payment application, you can:
- Toggle between currencies for the whole table.
- Edit the value of the Unit Cost and Amount columns. The selected foreign currency is shown as default.
The system will automatically recognize the currency set for a supplier within their contract, so Work Completed will be entered in the local currency. The system will automatically convert it back to the project's base currency.
Foreign Currency in Expenses
Expenses can also be entered and managed in foreign currencies. When a linked contract is awarded in foreign currency, you'll see the changes in the Expense tab.
Working with Foreign Currency Expenses
The system will automatically recognize the currency set for a supplier within their contract, so the Unit Cost and Amount are entered in the local currency. The system will automatically convert it back to the project's base currency.
Hover over the icon to see the converted values and the current exchange rate.
Edit Exchange Rates in Expenses
You can change the exchange rate by clicking the 
icon or the flyout panel of the expense, except at In Review or Paid status. Once an expense is approved, the field will be locked and the rate can't be changed. Learn more about expense statuses.
Foreign Currency and Overbilling
When working with foreign currency payment applications, overbilling validation has specific behavior:
- If overbilling is disallowed, the validation process will only apply to the foreign currency values, not base currency values.
- This ensures that overbilling checks are performed against the actual contracted amounts in the supplier's currency.
Foreign Currency in Document Generation
When generating documents or exporting payment applications:
- When a contract associated with a payment application is denominated in a foreign currency, the value will be exported in that currency during document generation.
- This ensures that suppliers receive documents in their local currency.
Exchange Rate Management
When can exchange rates be edited?
- Cost Payment Applications: Any time except In Review, Paid, or Approved status.
- Expenses: Any time except In Review or Paid status.
- After Approval: When you set a cost payment application's status as Approved, you can still edit the exchange rate, but this will recalculate the application and update subsequent applications.
When you edit exchange rates:
- The current application's Actual Cost values will be recalculated.
- Subsequent payment applications will be updated accordingly.
- The system maintains consistency across all related financial records.
Best Practices
- Set up currencies early in project setup to avoid complications later.
- Monitor exchange rates regularly, especially for long-term projects.
- Document rate changes when editing exchange rates for audit purposes.
- Coordinate with suppliers on preferred currency for their payment applications.
- Review converted amounts before finalizing payment applications.