Currency

What does currency mean?

The term ‘currency’ or ‘money’ refers to a country’s official legal tender: think of the euro, the US dollar, the British pound, the Japanese yen, … The official currencies of countries are included in the standardised ISO 4217 list.

National and foreign currencies

A distinction is made between your own or nationally valid currency and foreign currencies, which by definition are only valid in the foreign country concerned. The relationship between different currencies is expressed by exchange rates. These determine the ratio for exchanging one currency into another. Between some currencies the exchange rate is relatively fixed, so the value of one expressed in the other changes little. With other currencies the changes are large, such as between the euro and the Turkish lira. This value ratio is linked to the strength of the economy, including inflation, to supply and demand on the international market, to the political situation and to other so-called macroeconomic factors.  

Currencies in onFact

onFact can work with different currencies. For example, the invoice to an American customer can be drawn up in US dollars. If you are active in Denmark, you can choose to sell in euros, but just as well in Danish kroner. What a seller chooses usually depends on their position in the buyer-seller relationship. When creating a document in another currency, onFact always shows the user the current exchange rate (it is not shown on the documents sent to the customer). This way, as a seller you see the amounts in the reference currency and the equivalent in the foreign currency directly in the interface.