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Foreign Currency Conversion

When a vendor invoices in a foreign currency, the amount has to be converted into US Dollars using a Currency Converter. This will provide an estimated amount of what will eventually be the final cost. In general, it does not matter what date the department selects for the conversion, but a note should be added to your DaFIS AP Vendor Invoice indicating what date was used. Currency rates are always fluctuating, so on the day that Accounts Payable processes the wire or draft, the amount will be slightly different. Keep in mind that the vendor will receive the actual amount billed, since it is our currency rate that would fluctuate, not the amount that the vendor billed.

If processing a reimbursement, use the date of invoice to convert the currency.

If your department is making payments on contract or grant money with specific dollar limits, please add a note to your AP Vendor Invoice advising Accounts Payable to pay the US Dollar amount referenced and to change the US Dollar amount back into the foreign currency amount. This helps ensure that the amount spent remains within the specific dollar limits.

See also Wire Transfer and Bank Draft Payment Instructions.