Syncing International Reimbursements

There are four key currency types:

1. Employee Bank Account Currency: The currency in which an employee's bank account is denominated.
2. Receipt/Expense Currency: The currency in which the original receipt or expense is recorded.
3. Payment Currency: The currency used for making the reimbursement payment.
4. Functional Currency of Entity: This is the primary currency of the entity

Reimbursement scenarios

There are two main scenarios for international reimbursements:

1. USD Business Bank Account Paying Internationally: Reimbursements involving payments from a USD-denominated business bank account to international employees.
2. Non-USD Bank Account Payments: Transactions involving payments from a non-USD bank account for international reimbursements.

Accounting limitations

The systems have certain limitations:

• One of the currencies must be the entity’s functional currency

• If the currency we send is the entity’s functional currency, only that one currency can be represented on the expense

• The exchange rate always converts to the entity’s functional currency.

Sync behavior by ERP

The behavior of different ERPs with respect to syncing payment and transaction currencies:

• Sage Intacct, QuickBooks Online, Xero, CSV: Syncs in payment currency.
• NetSuite: Syncs in the original receipt currency.

Syncing international reimbursements

Unlike U.S. reimbursements, international reimbursements are not available to sync to your ERP until they are fully paid.

For U.S. reimbursements, the transaction becomes available for sync immediately after approval. However, for international reimbursements, sync is delayed until the payment has been completed.

• If you're not seeing an international reimbursement available for sync, check whether the payment has been processed.

Exchange rates

• Exchange rates are pulled from the open exchange rate API.
• Rates are applied based on the transaction or approval date.
• Conversion rates cannot be applied for reimbursements made in a single currency.

Example 1: USD business bank account + paying international employee

Context

• Your company is headquartered in the US, and your functional currency is USD.
• Your business checking account is held in USD.
• You have an employee located in France who submits an expense report in EUR.

Process

• Sage Intacct, QuickBooks Online, Xero, CSV*: The transaction is recorded in USD (thepayment currency).*
• NetSuite*: The transaction syncs in the original receipt currency (EUR). However, NetSuite will still convert to USD in the background for your entity’s overall accounting, as required.*

Example 2: non-USD bank account (international reimbursement debiting)

Context

• Your company is still headquartered in the US (functional currency = USD).
• However, you maintain a UK business bank account in GBP.
• An employee in the UK incurs expenses in GBP and needs to be reimbursed directly from your GBP account.

Process

• Sage Intacct, CSV*: The transaction is recorded in thepayment currency(GBP).*
• NetSuite*: The transaction syncs in the original receipt currency (GBP).*
• QuickBooks Online, Xero*: Currently donotsupport non-USD reimbursements in this workflow.*