Implementing a multicurrency setup

Owned by Frank Louwerse
Last updated: May 14, 2024 by Niels Overbeeke

Clients who operate internationally, potentially use different currencies for customer sales and financial settlements towards owners and/or agents. By default, the system operates in 1 currency for any financial topic (sales prices, owner settlements, financial accounting). It is possible to enhance the system setup to support multiple currencies. Implementing multicurrency ties into the following concepts and configuration: 

Concept

  • Multicurrency is activated on concern level, so required configuration should be in place throughout the concern
  • An Administration Organisation has 1 currency in which financial accounting (bookkeeping) is done. This is usually the currency of the country where annual figures of respective AO are created. This currency is referred to as AO currency
  • Sales prices are configured per rate type. A rate type has 1 currency. In a multicurrency environment, there should at least be 1 rate type per currency. 
  • Rate types are linked to accommodationtypes. An accommodationtype can have rate types linked of different currencies with sales prices in different currencies. The correct sales price will be fetched based on DC currency. 
  • A Distribution Channel has 1 currency in which reservations via that channel are made. It is possible to link multiple rate types to a DC, but only of the currency is similar. It is not possible to link various currencies to 1 Distribution Channel. This is referred to as DC currency
  • In case accommodations are owned by third parties, the currency in which reservation income is settled is often in the currency where the accommodation owner is situated. This can be different from AO currency and DC currency. This currency is referred to as Owner currency
  • Amounts in reservations in foreign currencies are for financial accounting calculated to AO currency using Exchange Rates

Configuration

  • AO module: Configure AO currency per AO
  • Rate types: Configure a rate type per currency
  • Distribution Channels: Link correct rate type(s) to distribution channels 
  • Accommodationtypes: Link applicable rate types to accommodationtypes. 
  • Sales prices: Configure sales prices in applicable currencies in corresponding rate types
  • Owner current account: Configure the applicable currency per owner current account
  • Outgoing payments bank account: Configure bank account currency in resort PAIN configuration

Note for concerns where initially the concern configuration was disabled and now getting enabled: 

  • NWS multicurrency.enabled concern configuration differs from MXTS feature flag Multi Currency. Both need to be updated together.
  • In case concern is first working with multi currency disabled then upon enabeling it there should be executed scripts to populate the values in the DC currencies (for revenue_distribution_detail and mutation_details) in existing data.