With better technology and small businesses dreaming big, looking for business overseas or with your neighbouring countries has become an everyday reality. So, if you’ve got a customer from another land, you’re going to need to know how to send them an invoice in their currency.

But before we start sending those invoices off here are a few things you need to know:

1. Understand your base currency

When you join stub, you will need to set your base currency (think of it as the currency you use to pay your tax). So if you live and pay tax in South Africa, your base currency should be ZAR (Rands). This does not restrict the currency you use on your invoices or payment links, you will be able to set these to whatever currency you choose on each invoice so you can still serve your international customers.

2. Exchange rates

An exchange rate is the rate used to change one currency to another currency. Exchange rates are updated daily, even hourly, across the globe. So if you wanted to change USD (Dollars) into ZAR (Rands) there is an exchange rate you would have to use.

Here's an example of an exchange rate: USD $1 ≈ ZAR R19

This basically means that $1 is equivalent to R19. So if you want to exchange $50 for Rands. You would use the following equation to work it out: $50 x R19 = R950

How to create an invoice in a different currency in stub

Creating an invoice in a different currency is just as simple as it's always been. When you create an invoice in stub, you can set the currency of the invoice to any of the following currencies:

• AUD - Australian Dollar
• EUR - Euros
• GBP - Pound Sterling
• KES - Kenyan Shilling
• MZN - Mozambique Metical
• USD - United States Dollar
• ZAR - Rands

and more...

Once you have set the currency of your invoice and added your products or services, we will show you the total of your invoice in the currency you set and the total in your business's base currency using the exchange rate of the day.

Like this:

$ 50.00 ≈ R 947.09

Exchange rate on {date}

When your customer opens up their invoice, they will see the total in the foreign currency you set. If you have setup online payments - the "Pay" button on the invoice will show the total amount in ZAR Rands (your base currency) using the exchange rate of the day.

Accepting payments from customers in different countries

1. Online payments

When your customer opens up their invoice, they will see the foreign currency total but the "Pay" button on the invoice will show the total amount in ZAR Rands (your base currency) using the exchange rate of the day. Your international customers will be able to pay using their Visa or Mastercard, cards.

3. Bank transfers

Your customers can also pay their invoices via EFT (Electronic Fund Transfer). You can add SWIFT or BIC codes to your bank details which will allow your customers to pay you directly into your chosen bank account.

What if the exchange rate changes by the time I get paid?

There are daily fluctuations in exchange rates, which could mean that you make or lose some money on each invoice and payment.

For example:

If you send an invoice on Monday for $100 (R1800) and the exchange rate used was $1 to R18

However, when your customer pays you on Friday, the exchange rate has changed to $1 to R17.50.

So when the customer paid you, the bank would have converted $100 into R1750. That's R50 less than what you expected, even though the customer has fully paid the $100 that they owe. You will need to settle this loss on your invoice and the R50 will be added as a “Loss on foreign exchange” expense in stub.

How to settle foreign currency invoices

If you head on over to your foreign currency invoice, you will see that your invoice may have either an Overpaid or Partially Paid status even though it has been paid in full by your customer. Because of the loss or gain you have made on the exchange rate. If this is the case, you are going to need to settle the excess or loss on that invoice payment.

To settle the loss or gain on an invoice due to the exchange rate:

1. Select the invoice

2. Simply find and click on the "Settle" button underneath the Payments section on your invoice.

Your invoice will now be settled and we will do the accountanty stuff for you and settle the gain or loss for that invoice.

See not soo scary. 😁