The conversion rate to be applied to the amount is that of the date applicable on the day the invoice was issued. To determine the value of an invoice in euros, there are some program available on the internet for this purpose, you will also find this facility on the www.limitconsulting.com website.
Once you know the value in Euros, that is the amount you have to place on record, that is until payment day, when the exact value is then determined.
Matching the payment with the invoice Normally, invoices do not get paid on the same day of issue, although you may hold an account in a foreign currency, assume that the payment is made from a normal Euro account, in which case the conversation rate will be different from the one used on the invoice date. Currencies fluctuate and change from one day to another.
If you are trading as an autonomo you do not be concerned by this difference, at least not from an accounting point of view. The self employed are not required to show a bank account register and matching values with payments is not important. Quite simply mark the invoice as paid even though the amounts may differ.
Not quite so if you are a limited company (SL) when a more detailed accounting is required. In this case the difference in the exchange rates needs to be accounted for, as follows:
For any further assistance or clarification on this or any other accounting matter, do not hesitate to contact Limit Consulting, who will only be too pleased to help.