Invoice currencies

Introduction

This article will explain logic behind currency settings in the platform, how these can be changed by the seller and what scenarios are possible. 

In this article:

• Supported scenarios
• Example
• Logic behind currency settings

Supported scenarios

There are multiple scenarios supported by the Platform for configuring currencies between different parties of the supply chain:

Example

Vendor A invoices Seller in USD. Vendor B invoices Distributor in EUR, Distributor invoices Seller in EUR. Seller invoices his customers in NOK. Customer has purchased two different offers from different Vendors and has Subscription A from Vendor A and Subscription B from Vendor B. Below available is the invoice structure:

Logic behind currency settings

The seller's base currency is defined in the contract. It is the currency in which the seller sees all prices in the platform. The currencies for the seller's incoming invoices depend on the contract currency with the vendors and distributors.

The outgoing invoice currencies can be defined per customer. Upon enablement by the seller customers have option to select the currencies in which they see all offers, and receive all their invoices.

The seller has rights to adjust the currency exchange rates for their outgoing invoices or the invoices to the customers. In their platform, the seller has to open Settings -> Currency & Payments -> Currency. 

In this menu, the seller can see the default currency which is also known as the contract currency. It is used to calculate all currency exchange rates for this particular seller's customer invoices. 

The exchanges rates used for invoicing are from the day before billing cycle.

In the currency settings, the source of currency exchange rates for the end-customer invoices can be set.  Three default sources are available:

• European Central Bank
• Currency Layer
• Custom rate

In order to minimize the currency risk exposure, the seller has a possibility to add the surcharge % to the currency exchange rate.

The currency conversion can be done from any currency presented in the list: