Accept Customer Payment for Invoice in Different Currency

Introduction

With the Multi-Currency Customers feature in NetSuite, users can assign a primary (base) currency to a customer and define additional currencies for transactions with them.

However, when trying to apply a customer payment in a different currency than the invoice, users will notice that the invoice does not appear under Transactions > Customers > Accept Customer Payments, unless the payment and invoice use the same currency.

Example Scenario

• Customer's Primary Currency: CAD
• Invoice Currency: CAD
• Intended Payment Currency: USD

Current Limitation

NetSuite currently does not support applying a payment in one currency to an invoice in another currency. This limitation is due to the system’s inability to perform double currency conversion on a single transaction. Each transaction supports only one exchange rate field.

This enhancement has been formally requested under Enhancement ID 112956.

Workaround: How to Apply a Payment in USD to an Invoice in CAD

If both a USD Customer Payment and a CAD Invoice already exist, you can follow these four steps to apply the payment indirectly:

Step 1: Create Customer Payment for Invoice in CAD. This is the original unapplied Payment based on the Invoice currency.

1. Go to Transactions > Sales > Create Invoices > List
2. Invoice (in CAD): Click View
3. Click Accept Payment
4. A/R Account: Select Account Receivable account
5. Account: Select Undeposited Funds
6. Currency: Select Euro
7. Click Apply tab
8. Click Invoices subtab
9. Apply: Enter Checkmark for the Invoice (in CAD)
10. Click Save

Step 2: Deposit Payment from Step 1. This is the Payment received from the Customer in USD.

1. Go to Transactions > Bank > Make Deposits
2. Account: Select USD bank account 
3. Currency: Select USD
4. Click Deposits tab
5. Click Payments subtab
6. Enter Checkmark for the Payment created
   • Amount (USD): Enter USD value of the Payment
7. Click Save

Step 3: Enter a Journal Entry in USD to reverse the impact of the Customer Payment from Step 1.

1. Go to Transactions > Financial > Make Journal Entries
2. Subsidiary: Select Subsidiary of the Customer
3. Currency: Select USD
4. Click Lines tab
   • Account: Select Accounts Receivable account used on the Customer Payment
     1. Debit: Enter Amount
     2. Name: Select Customer's Name
     3. Click Add
   • Account: Select USD bank account of the Customer Deposit from step 2 
     1. Credit: Enter same USD Amount 
     2. Name: Select Customer's Name
     3. Click Add
5. Click Save

Step 4: Apply the Journal Entry against the Customer Payment created in Step 1.

1. Go to Transactions > Customers > Accept Customer Payments
2. Customer: Select Customer
3. A/R Account: Select Account Receivable account (the same as on unapplied Customer Payment (in USD) and Journal from step 3)
4. Account: Select Undeposited Funds
5. Currency: Select USD
6. Click Apply tab
7. Click Invoices subtab
8. Apply: Enter Checkmark for the Journal Entry created in Step 3
9. Click Credits subtab
10. Apply: Enter Checkmark for the unapplied Customer Payment (in USD)
11. Click Save

If you want to learn more about the customer payment for invoice in different currency in Netsuite, please contact Concentrus today to discuss your needs.

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