Set up multicurrency

For businesses that operate internationally, handling transactions in different currencies is a necessity. The multicurrency feature in Maxxton allows you to manage sales, accounting, and financial settlements in various currencies seamlessly.

By default, the system uses a single currency for all financial operations. By enabling the multicurrency environment, you can configure a primary currency for your internal accounting while simultaneously handling sales and owner settlements in different currencies, with all conversions managed by the system using defined exchange rates.

Set up a multicurrency environment

Activating and configuring the multicurrency feature involves a series of steps to ensure that all parts of the system handle financial data correctly.

Enable the multicurrency feature

The first step is to activate the multicurrency functionality for your entire concern. This is accomplished by enabling a feature flag that is managed by Maxxton Support. Once this setting is turned on, the system’s financial logic expands to support multiple currencies.

Define core currencies

With the feature enabled, you must define the roles that different currencies will play in your operations:

• Administration organisation currency: The primary currency used for your main financial accounting and bookkeeping. Each administrative body in your organisation will have one designated AO currency. All transactions made in other currencies are converted back to this currency for centralised reporting.
• Distribution channel currency: The currency used for sales on a specific channel, such as your brand website or a third-party reseller. A single distribution channel can only be linked to rate types that share the same currency.
• Owner currency: If you manage properties for third-party owners, this setting defines the currency used for their financial settlement statements and payouts.

Configure exchange rates

A crucial part of the multicurrency setup is managing the exchange rates that the system uses for currency conversions. These rates are configured at the administration organisation level.

From the Admin organisation settings, navigate to the Exchange rates section. Here, define the conversion rates between your base currency (typically the AO currency) and any other currencies you operate with.

For each exchange rate, configure:

• Base currency: the primary currency from which you are converting.
• Exchange currency: the currency you are converting to.
• From-to date: the period during which this specific exchange rate is valid.
• Exchange rate: the rate of conversion.

The system automatically converts transaction amounts using these rates, for example, converting a payment made in a DC currency to the AO currency for internal accounting.

Configure sales prices and rate types

To sell your inventory in different currencies, configure your rates and prices accordingly:

• Create rate types per currency: create separate rate types for each currency you wish to sell in, for example, Standard Rate EUR and Standard Rate USD.
• Configure prices: within each new rate type, configure the sales prices in the corresponding currency.
• Link to accommodations: associate all applicable rate types with your accommodation types. The system automatically presents the correct price and currency to the customer based on the distribution channel.

Configure financial accounts

Finally, ensure your internal financial accounts are set up for multicurrency operations:

• Owner accounts: assign the correct settlement currency to each owner’s account.
• Bank and miscellaneous accounts: configure the specific currency for the bank and miscellaneous accounts used for incoming and outgoing payments.

How multicurrency affects your operations

Enabling the multicurrency feature changes how financial information is processed and displayed across the platform.

Billing and invoicing

The system automatically adapts the billing process to handle different currencies.

When a booking is made, the generated bill is in the currency of the distribution channel used. For internal accounting, the system uses configured exchange rates to convert amounts from the distribution channel currency to your primary AO currency.

Financial reporting

Financial reports provide a more detailed view of transactions involving foreign currencies.

Reports include additional columns to show values in both the original transaction currency and the converted amount in your primary accounting currency. This allows for clear and accurate financial analysis without manual conversions.

Payments and bank statements

Reconciling payments and managing bank statements is fully currency-aware.

When processing bank statements, the system identifies and handles incoming payments in various currencies. Account balances and statements can be viewed in either the original payer’s currency or the primary accounting currency, providing flexibility for your financial teams.

Owner settlements

Financial settlements with property owners are streamlined and accurate.

The settlement process for owners is automatically calculated in their pre-configured owner currency. This ensures owners receive statements and payments in the currency they expect, simplifying communication and financial relationships.