Ramp has built powerful automations for international companies to help automate and seamlessly integrate Ramp with your accounting software. No need to enable or turn on anything on your end, it just works!
Additionally, we'll be able to support sending over tax information tied to international transactions / reimbursements.
When a transaction or reimbursement is paid in a non-USD currency, you will be able to sync the original transaction amount in that currency. (only available for NetSuite OneWorld).
How it works
When a transaction or reimbursement comes into Ramp, we will sync it in its original currency.
- If the vendor on NetSuite does not accept that currency, then we will add it as a supported currency for that vendor and sync it in that currency
- If the currency is not accepted in NS, then we will use the functional currency of the subsidiary we're syncing to within NS
- We convert the original currency of transaction / reimbursement to the currency we are syncing in
If an entity / subsidiary has nexuses and tax codes, then they will appear within Ramp and can be added for transactions and reimbursements.
- A user on Ramp would input a tax code for a transaction
- From that tax code (which is set up in NS), we would apply the tax rate that is tied to that tax code in NS
- If the tax code is left blank, then the default tax rate will be applied
Note: if you'd like to have employees input this information, you can require tax codes in the expense policy (more details here in section 4: Define Submission Requirements) and provide aliases for them in Ramp so they are easy for employees to understand.
Detailed Breakdown of NetSuite
Currency: Vendors in NS have a primary currency (which is the default for that vendor) but they can also accept other currencies. Ex: Amazon's primary currency is USD but it may also accept GBP, CAD, etc.
A NetSuite OneWorld instance has a primary reporting currency. This currency is usually the currency of a corporation’s holding company, and is the currency in which all consolidated reporting is performed. By default, any new subsidiaries created within a NetSuite OneWorld instance will use this reporting currency if an alternative currency isn’t specified.
Subsidiaries have a functional currency in which local accounts are managed. It may be the same as the overall reporting currency or it may be different. When a subsidiary has a non-USD functional currency, Ramp will sync transactions in the original currency of the transaction, as long as the vendor accepts the currency, and that transaction amount will be converted to the functional currency of the subsidiary.
Tax codes in NS are tied to a specific country in NS. Additionally, you can see what tax code is the default by:
- Look up "page: tax codes" in the NS search bar up top and selecting it
You will be navigated to a page that looks similar to the one below
- The right hand most column says "Default Code" with a Yes or No. Here is where you can see the default code per country (only one default code is allowed per country)
- Note: if this column is not visible, select "Edit View" button right below "Tax Codes" and add "Default Code" to the view (picture below)
This means that when someone syncs over a transaction or creates one within NS, that tax rate will take effect on the transaction
- Ex: if default tax rate = 10%. We attempt to sync a $100 transaction and it will add a 10% tax rate to that transaction to have a total of $110 (which is incorrect).