A foreign client payment is money received from an overseas customer for goods, services, subscriptions or another documented commercial obligation. The workflow must connect the foreign payer, currency and payment route to the correct receivable.
Which details should be agreed?
- Invoice currency and amount
- Receiving account and supported rail
- Who bears sender, intermediary and receiving fees
- Required invoice or payment reference
- Withholding tax or documentation
- Expected payment and value dates
How should the payment be processed?
- Issue the invoice to the correct legal entity.
- Share verified currency-specific receiving instructions.
- Monitor the expected payer and amount.
- Identify deductions, conversion and fees.
- Allocate the received amount to the invoice.
- Resolve shortfalls and retain remittance evidence.
What causes a short payment?
Intermediary bank charges, sender deductions, withholding tax, currency conversion and payer errors can reduce the amount received. The business should distinguish an agreed deduction from an unresolved balance.
Payment received vs. invoice settled
A bank or provider can report a received transaction before finance has matched it to the customer and invoice. Settlement of the receivable requires allocation and treatment of any difference.
What should the record contain?
Link the contract, invoice, payer identity, receiving details, original currency, received currency, rate, fees, tax certificates, value date, allocation and remaining balance.
