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Expenses.md

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Currently (Normal Flow):

  • Expenses are added in any currency
  • Converted at point of creation to Local Currency
  • On Customers Side
    • Displayed to customer
      • Expense : Billing
      • At the point creation
      • DOESNT include FX Fee
  • Approved at that rate
  • Goes into Payroll
  • Snapshot Created -> Exchange Rates Stored at that point
  • What goes into the calculator
    • Saved Local Currency (That it was at the time of logging the Expense)
  • Invoice Calculations:
    • Converted from LOCAL to BILLING using Run-Specific-Exchange- List

-> Local Salary Payment

Billing Currency: EUR Local Currency: NGN

Expense Logged as 100 USD Displayed to Employer as 101 EUR Converted to Local -> 10,000 NGN

Enters Calc as 10,000 NGN

  • in Payroll Provider Report

At Invoicing: -> 10,000 NGN : EUR ~ 102 EUR (Run-Specific-Exchange- Rate) -> +2.5%

Currently (For SPDC):

  • Expenses are added in any currency
  • Converted at point of creation to Local Currency
  • On Customers Side
    • Displayed to customer
      • Expense : Billing
      • At the point creation
      • DOESNT include FX Fee
  • Approved at that rate
  • Snapshot Created -> Exchange Rates Stored at that point
  • What goes into the calculator
    • Saved Local Currency (That it was at the time of logging the Expense)
    • in Calculation Results:
      • For FC Payment:
        • converted to SP currency at rate defined for that cycle
      • For Pegged (Direct)
        • uses saved local currency (not converted) (rate from creation date)
  • Invoice Calculations:
    • Converted from LOCAL to BILLING using Run-Specific-Exchange- List

-> Employee Actually Paid in USD

SP Currency: USD Billing Currency: EUR Local Currency: NGN

Expense Logged as 100 USD Converted to Local -> 10,000 NGN

Enters Calc as 10,000 NGN Converted back to USD at Run-Specific-Exchange- Rate -> 105 USD

  • in Payroll Provider Report

At Invoicing: -> 105 USD : EUR ~ 102 EUR

-> Direct Pegged

SP Currency: USD Billing Currency: EUR Local Currency: NGN

Expense Logged as 100 USD Converted to Local -> 10,000 NGN

Enters Calc as 10,000 NGN

  • in Payroll Provider Report

At Invoicing: -> 10,000 NGN : EUR ~ 102 EUR (Run-Specific-Exchange- Rate) -> +2.5%

Normal: -> Fixed Rate at time of logging (Expense:Local) -> Convert from Local -> Billing based on Cycle Rate

For SPDC: Same, Fix rate at time of billing -> (Expense:SP:Local) -> Must go into calc as SP -> Recalculated in Local (Taxes added based on this local amount) -> Converted from Local -> Billing

IF Expense Currency = SP/Local currency = Billing -> "Why did I pay more for this expense?" --> "Billing conversion calculation is based on an aggregated exchange rate fixed on the 5th of each month at Playroll Payroll Cutoff on Payroll"