Foreign Currency Reimbursement Workflow

Foreign-currency claims need a clear link between the source transaction and the amount submitted for reimbursement. A reviewer should be able to identify the original currency and amount, the business purpose, the evidence of payment, and the conversion method required by organizational policy. Conversion methods and treatment of fees can vary by organization, payment method, and jurisdiction. Consult applicable policy and jurisdiction rather than assuming a universal exchange-rate source, conversion date, or local rule.

Capture the original transaction first

Ask the employee to submit the itemized receipt or equivalent record showing the merchant, transaction date, original currency, and original amount, together with the business purpose and trip or project context. Where available and appropriate, retain the card or payment record that shows the billed amount and currency conversion. These sources may differ because a card issuer can apply a conversion date, rate, or fee that is not identical to the purchase-date estimate. Keep the original transaction visible rather than replacing it with a converted figure.

Apply the organization's documented conversion basis

Identify the policy method for converting the expense into the reimbursement currency. The method may distinguish card transactions from cash purchases, or may specify how to treat a conversion fee; follow the written rule for the specific situation. Record the source, date or period, currency pair, rate or reported converted amount, and calculation. If the policy does not cover the case, pause and ask the finance or policy owner for an interpretation instead of choosing whichever figure appears most favorable.

Reconcile differences and avoid double counting

Compare the submitted converted amount with supporting payment evidence and explain any material difference. Determine whether a separately listed fee is a genuine additional charge under the policy or already included in the billed amount. Check for duplicate submissions when an employee has both a receipt and a card record for the same purchase; the records support one transaction, not two reimbursements. Record the amount accepted and the reason if the submitted amount is corrected.

Worked example: a hotel charge paid by card

An employee submits a hotel receipt in a foreign currency, a business-trip itinerary, and a card statement showing the issuer's converted amount and a separate foreign-transaction fee. The reviewer confirms the hotel dates match the trip and checks the organization's conversion policy. If that policy directs use of the card-billed amount for card purchases, the reviewer uses the statement's converted amount and separately evaluates the fee under the applicable rule. The receipt remains attached as evidence of what was purchased. If the statement is not yet available, the reviewer requests it or follows the organization's documented interim process instead of silently substituting an unrelated daily rate.

Resolve missing evidence and close the record

Return an incomplete claim with a specific request: for example, the original-currency receipt, the payment record, or the rate basis used. If the record is genuinely unavailable, follow the organization's missing-evidence procedure and document the explanation and decision. Escalate conflicting records, unclear fee treatment, unusual currency conversion, or jurisdiction-specific questions to the designated owner. When a correction is made, preserve the original amount, corrected amount, basis, and reviewer so that the reimbursement can be traced back to its source transaction.

• Keep the source currency and original amount visible.
• Identify and cite the conversion basis required by policy.
• Reconcile fees and card conversion without double counting.
• Document questions, correction, reviewer, and final disposition.