Multicurrency
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      Multicurrency

      What is Multicurrency in SabeeApp?

      The Multicurrency feature in SabeeApp allows you to process payments in a currency different from your account's default currency, as well as from the currency of an invoice or pre-payment invoice. This provides flexibility in handling international transactions.

      There are no restrictions on currency combinations—any currencies can be used together.

      How Multicurrency Works

      In the hospitality industry, the contract between a property and a guest is typically settled in the property's default currency (as defined in your SabeeApp account). However, guests may make payments in different currencies. When this happens, those payments need to be converted to the property's default currency.

      Example:

      If your SabeeApp account's default currency is EUR, but a guest makes payments in USD and GBP, you can still issue an invoice in EUR that includes both USD and GBP payments.

      Handling Exchange Rate Fluctuations

      Exchange rates fluctuate daily, which affects the value of payments made in a different currency. SabeeApp offers settings and tools to manage this:

      Settings: Fixing Payment Value & Exchange Rate

      You can choose when to fix the exchange rate and payment value:

      1. On the payment creation date (default setting)
      2. When the payment is first attached to a prepayment invoice or invoice

      To configure this setting:

      • Navigate to Settings > Invoice > Custom Currency

      • The toggle is enabled by default, meaning the system will fix the payment’s value and exchange rate on the date the payment is created.
      • If disabled, the exchange rate remains flexible and updates daily until the payment is attached to an invoice.

      Impact of This Setting

      • If the setting is enabled: The system calculates the Amount Due based on the exchange rate at the time of payment, avoiding fluctuations.
      • If the setting is disabled: The payment’s value in the default currency is recalculated daily, causing the Amount Due to fluctuate in the Folio. Once the payment is attached to an invoice, the exchange rate is fixed based on the Fulfillment Date set in the invoice.

      Tools for Managing Multicurrency Transactions

      SabeeApp provides two key tools for managing currency fluctuations:

      1. Clear Balance – Helps adjust Folio balances when exchange rate changes cause discrepancies.
      2. Correction – Allows manual adjustments to correct exchange rate differences.

      By using these settings and tools, you can ensure smooth and accurate financial management for multi-currency transactions in SabeeApp.

      Clear Balance Functionality

      Regardless of which option is selected for fixing the payment’s value and exchange rate, exchange rate fluctuations may still cause differences between the payment amount and the invoice amount. The Clear Balance button helps offset these differences, ensuring that invoices match the correct amount after currency conversion.

      When is Clear Balance Needed?

      Exchange rate differences typically occur when the payment registration date and the invoice creation date are different.

      Example Scenario:

      • SabeeApp account’s default currency: EUR
      • Payment currency: TRY
      • Payment date: March 1, 2024
      • Applied exchange rate rule: Fixed on payment creation date
      • Reservation amount: 100 EUR

      The guest transferred the total amount for the reservation in TRY before check-in, and the system converted 100 EUR to TRY using the exchange rate on March 1, 2024.

      At this point:

      • The Amount in EUR on payment day in the Payment table is 100 EUR (fully paid).
      • The Amount Due in Folio is 0 EUR (no outstanding balance).
      • However, the Amount in EUR on the current day may differ due to exchange rate fluctuations.

      When the guest checks out and an invoice needs to be issued in TRY, the system calculates the invoice amount based on the fulfillment date (April 24, 2024, in this example). Since the exchange rate has changed, the converted amount now differs from the original payment.

      • The new converted amount based on the April 24 exchange rate: 3511.36 TRY

      • The originally paid amount: 3933.33 TRY
      • Difference due to exchange rate fluctuation: 117.83 TRY

      Using Clear Balance to Adjust the Difference

      The Clear Balance button helps offset this 117.83 TRY difference. Once applied, the invoice can be marked as paid.

      The adjustment appears in the system as a payment note labeled "Exchange Rate Gain/Loss", ensuring accurate financial records.

      System Payment Parameters

      When the Clear Balance button is pressed, a system-generated payment is created with the following parameters:

      • Payment time – The exact moment the Clear Balance button is pressed.
      • Payment type – System-generated payment.
      • Currency – Always matches the currency of the invoice.
      • Paid total – The difference amount caused by exchange rate fluctuations.
      • Amount in %defaultcurrency% on payment date –
        • If the invoice is in the default currency, this amount remains unchanged.
        • If the invoice is in a different currency, the amount is converted using the exchange rate on the invoice's fulfillment date.
      • Exchange rate on payment date – The exchange rate corresponding to the invoice’s fulfillment date.
      • Amount in %defaultcurrency% on invoice date – Same as "Amount in %defaultcurrency% on payment date."
      • Exchange rate on invoice date – Same as "Exchange rate on payment date."
      • Invoice – The number of the advance invoice/invoice where the system payment was applied.
      • Comment – Always empty, as manual comments cannot be added to system payments.

      Correction Functionality

      A detailed explanation of this functionality is available in the help guide.

      With the introduction of the Multicurrency feature, the Payment table on the Reservation page and the Payment section on invoices now include additional columns:

      • Amount in %defaultcurrency% on payment day
      • Exchange rate on payment day
      • Amount in %defaultcurrency% on current day
      • Exchange rate on current day

      Payment Amount Columns on the Reservation Page and Invoices

      Reservation Page

      The Amount in %defaultcurrency% on payment day and Amount in %defaultcurrency% on current day impact the Amount Due in Folio, depending on the selected exchange rate fixation rule:

      • If the fixation rule is enabled (Settings > Invoice > Custom Currency), the Amount Due in Folio is based on the Amount in %defaultcurrency% on payment day.
      • If the fixation rule is disabled, the Amount Due in Folio is based on the Amount in %defaultcurrency% on current day, meaning the exchange rate remains flexible until the payment is attached to an invoice.

      Since exchange rates fluctuate daily, the Amount in %defaultcurrency% on current day and Exchange rate on current day columns update constantly. If exchange rates are updated multiple times per day, these values will also change multiple times.

      However, if custom exchange rates are used in a SabeeApp account, the system applies the predefined fixed rate instead of fluctuating market rates.

      Fixing Exchange Rates on Payments

      • When a payment's exchange rate is fixed, the system displays the fixed value in brackets next to the corresponding column.
      • Hovering over these values will show a tooltip explaining their significance.

      Tooltip Texts:

      • 'Amount in %defaultcurrency% on current day' → "This amount indicates the value that the payment has been fixed at."
      • 'Exchange rate on current day' → "This value indicates the exchange rate used when fixing the payment's amount."

      Payment Section on Invoices

      When attaching a saved payment to a prepayment invoice or invoice, the same payment columns appear as on the reservation page.

      Additional Key Information

      Payments Used Multiple Times

      If a payment is used more than once (e.g., first on a prepayment invoice and later on an invoice), the original fixation rule remains in effect. This ensures consistency across all future uses of the payment.

      Cancellation of a Prepayment Invoice or Invoice

      If a prepayment invoice or invoice is canceled but the associated payments are retained, those payments revert to their pre-invoice state. Their value in the default currency is then recalculated based on the fixation rule:

      • If fixation on the payment date is applied → The value is based on the exchange rate at the time of payment.
      • If fixation on the invoice date is applied → The value is based on the exchange rate at the invoice’s fulfillment date.

      Multiple Payments in a Reservation

      If a reservation includes multiple payments, the same fixation rule applies to all payments within the account—only one fixation rule can be used at a time.