How do you enter a foreign-currency receipt in Xero?

Short answer: enter a foreign-currency receipt as a spend-money transaction on the bank or card account it was paid from, for the amount that account was charged. If you paid €40 on a UK sterling card, the books need the pound figure that left the account, with the euro amount kept as a note. Quenta does this from a photograph: it reads the currency, posts the transaction with the image attached, and keeps the original amount and currency on the Xero record.

This describes a workflow, not accounting or tax advice. Xero's plans change, so check the page linked below before you rely on a feature.

Which amount do the books need: the receipt's or the bank's?

The books need the amount the bank took, in the currency of the account it left. A sterling card paying a euro bill is charged in pounds, and that pound figure is what your bank feed will show. A transaction recorded at any other figure may not match the feed line when you reconcile.

The receipt still matters. It is the evidence of what you bought and the price in the supplier's currency. So you want both numbers on the record: the charged amount as the transaction, the receipt's amount in the reference or description.

Do you need Xero's multicurrency for this?

You do not need Xero's multicurrency for a card that is billed in pounds. Xero's multicurrency features are for holding foreign-currency bank accounts or raising foreign-currency invoices and bills. Xero's UK multicurrency page, read on 6 November 2026, lists "Use multiple currencies" under the Comprehensive and Ultimate plans, not under Ignite or Grow. It says rates update hourly and can be changed by hand.

If you do keep a bank account in a foreign currency, Xero's help centre says the currency has to be added to the organisation before you can add that bank account or create a transaction in it, in its guide to adding a foreign currency. A sterling card with the odd euro or dollar receipt needs none of that.

How do you find the amount that was actually charged?

Look at the bank or card notification, or the line on the statement. The charged figure includes the card issuer's exchange rate and any fee, so it rarely equals the receipt total multiplied by a rate from the internet. If the notification is gone, the bank feed line shows it once the payment clears.

A rate from a converter gives you an estimate. The statement gives you the figure. The difference is usually small, but it is the difference between a reconciled line and one that needs a second look.

How does Quenta handle a foreign-currency receipt?

Quenta treats the receipt currency as something to compare with the payment account. Its help guide to review and fix says that when the receipt currency differs from the selected payment account, Quenta asks for the amount that was actually charged, and that it keeps the original amount and currency in Xero and sanity-checks unusual exchange rates before posting. The steps run like this:

1. You photograph the receipt, or forward it by email.
2. Quenta reads the merchant, date, total and currency, as described in how Quenta works.
3. If the currency differs from the account, it prices the receipt in the account's currency. You can replace that figure with the amount from your banking notification or statement.
4. It posts an authorised spend-money transaction in Xero with the original image attached.

The receipt shows both amounts in the app: its own amount first, with the account-currency figure beneath. If Quenta read the wrong currency, such as a euro bill read as dollars, you can change the currency and repost without photographing the receipt again.

What happens to VAT on a foreign receipt?

Quenta posts foreign-currency receipts without VAT. Its how it works guide states this. Quenta does not decide whether you can reclaim VAT on a purchase from abroad, because that depends on the supply and your circumstances. If you are VAT registered, HMRC's VAT Notice 700/21 on keeping VAT records says the VAT invoices you receive are the primary evidence for recovering VAT on purchases, so check the invoice and ask your accountant when it is unclear.

What if the transaction is already reconciled?

For a reconciled transaction, open the receipt in Quenta and use Recode or Move. Quenta's guide says Xero can reject changes to reconciled transactions or locked accounting periods, and that Quenta then shows Xero's reason and leaves the record as it was. If the change is genuinely needed, Xero's own reconciliation and lock-date settings decide what is possible.

A routine for travel and overseas suppliers

1. Photograph the receipt the same day. Foreign till receipts fade and get lost in a suitcase as quickly as any other.
2. Keep the card notification. It is the cheapest way to get the charged amount.
3. Check the currency Quenta read. The symbol on a receipt is easy to misread, and one tap fixes it.
4. Enter the real charged amount when you have it. It beats the estimate.
5. Reconcile as normal. The transaction should be waiting when the feed line arrives.

What does it cost?

Quenta's free plan covers 10 receipts a month per organisation. Quenta Pro is £6 per user a month, or £60 per user a year, tax included. Pro is fair-use capped at 350 receipts a month per workspace, so it is not unlimited. See the pricing page.

Quick answers

Which exchange rate should I use in Xero? For a card payment, the rate your bank applied, which you get from the charged amount. Xero lets you change rates by hand where multicurrency is on your plan.

Do I need a foreign-currency bank account in Xero? Only if you hold money in that currency. A sterling card used abroad is a sterling account.

Does Quenta add VAT to foreign receipts? No. Foreign-currency receipts are posted without VAT.

Is Quenta made by Xero? No. It is an independent app that connects to Xero.

To see the whole route from photograph to posted transaction, read receipt scanning for Xero. Try it today.

Quenta is an independent app from We UC Ltd. Xero is a trademark of Xero Limited. Quenta is not affiliated with or endorsed by Xero.

Photograph it and forget it.