---
title: "Multi Currency Advance & Claim"
space: "Frappe HR"
url: "https://docs.frappe.io/hr/multicurrency-employee-advance-expense-claim"
updated: "2026-04-03"
---

**Employees working internationally or handling expenses in foreign currencies may receive advances in currencies different from the company’s base currency. Frappe HR now supports Multi-Currency handling for both Employee Advance and Expense Claim to be recorded, paid, adjusted, and managed in any currency while maintaining accurate accounting and exchange rate impact.**

With this feature in v16, it now supports:

- Multi Currency Employee Advances
- Multi Currency Expense Claims
- Accurate exchange rate conversions
- Automatic exchange gain/loss entries
- Multiple Payment Entry against the same advance

## **1. Prerequisites**

1. Employee
2. Department
3. Chart of Accounts
4. Multi Currency Setup
5. Employee Advance
6. Expense Claim

**1.1 Create Expense Claim Type & Mode of Payment**

Before creating multicurrency records, make sure your **Expense Claim Types** and **Modes of Payment** are configured with accounts that use the correct currency.

For example, the standard **Expense Claim Type** (such as *Travel*) may be linked to an account in the company’s base currency. So such a type won’t accept a claim in a different currency. In these cases, create a separate expense type (e.g., *Travel — USD*) and link it to an account that uses the same transaction currency

![](/files/Expense Claim Type.png)
*Expense Claim Type*



Similarly, if you are paying via Bank or Cash in a foreign currency, the Mode of Payment must link to a corresponding currency account. This ensures that expense claims and advances in currencies other than the company’s base currency are captured and processed correctly.

![](/files/Mode of Payment.png)
*Mode of Payment*

## **2. Multi-Currency in Employee Advance**

Before creating an Employee Advance, ensure that the **Employee Salary Currency** is correctly set in the Employee master.  

A new field **Employee Advance Account** is added in the Employee master. This account should match the employee’s salary currency.  

> **Note:** If these fields are not set, Employee Advance allows manual selection. Make sure the advance account exists with the correct currency before creating an advance.

**2.1 How to Create a Multi-Currency Employee Advance**

1. Go to: **Employee Advance > New**
2. Select the **Employee**
3. Choose the **Currency** if not fetched automatically and enter the **Advance Amount**
4. Under the Accounting section:
  - **Advance Account** is fetched from **Employee Advance Account** in the Employee master; if not fetched, select manually  
  - Select **Mode of Payment** if applicable
5. Save the document

![emp-advance](/files/MultiCurrencyEmployeeAdvance.png)

## **3. Payment of Multi-Currency Advances**

Payment for a submitted Employee Advance can be made via **Payment Entry**.  

> **Note**

- At the time of payment, the current exchange rate will be fetched. This rate is used to calculate the base currency amounts and determine exchange gain/loss during Expense Claim.  
- The original exchange rate on the Employee Advance is no longer used; the payment exchange rate is used for all further calculations.

**3.1 Multiple Payment Entries**

If the same advance has multiple payments:  

- Each payment is tracked separately  
- Multi-currency payments with different exchange rates are supported  
- Correct amounts are reflected in Expense Claim

## **4.Multi Currency Expense Claim**

1. From **Employee Advance → Make Expense Claim**

- The advance currency will be fetched in the Expense Claim.  
- All linked advances will appear in the **Advances Table**.  
- Exchange rate at the time of payment will also be fetched in Advances Table. 
- Base currency values are auto-calculated based on the exchange rate at the time of claim.  
- If the same advance has multiple payments, each payment will appear as a separate row in Advances Table with the corresponding **Payment Entry** reference. This helps in reconciling partially claimed advances.

![multi-payments](/files/multi-payments.jpeg)

Once the Expense Claim is Submitted, the claim amount is allocated from the Advance table

![advance-claimed](/files/advance-claimed.jpeg)

## **5. Exchange Gain/Loss Handling**

- If the exchange rate at the time of Expense Claim differs from the exchange rate at the time of advance payment:  
  - Exchange gain/loss is calculated for each advance row  
  - Total gain/loss is posted via **Journal Entry**, ensuring accurate accounting

![gain_loss](/files/gain_loss.jpeg)

![gain_loss-booked](/files/gain_loss-booked.jpeg)

**References:**  

- Employee Advance
- Expense Claim