Currencies are used by users to create expenses using the receipt amount and currency, to import transactions, or to find how much they will be paid.
Perk supports ISO 4271 active national currencies (excl. supranational currencies) and precious metals (XAU, XPD, XPT, XAG).
The amount and currency entered should match with:
- The country of spend
- The receipt
- The Receipt currency field is meant to capture the currency in the receipt.
- The Expense Country is meant the country in which the expense happened.
- The Total Amount is meant to capture the amount in the receipt in the original currency.
VAT postings depend on the correct information being entered. For example, if VAT is configured for Country X, spend in Country X should have the currency of country X. Otherwise, the amounts do not match, resulting in incorrect postings, incorrect VAT reclaim, and potential fines for companies.
More specifically:
- Reporting are accurate only if country of spend and currency are correctly entered.
- Postings are accurate only if country of spend and currency are correctly entered.
- Audit does not find discrepancies between the country of spend and currency.
- Less propensity to fraud
- Same approach as automatic populated credit card Transactions
Perk automatically derives the currency of spend depending on the country selected to guarantee the best possible data quality.
The currency used for displaying amounts and the currency for booking amounts may be different:
Display currency
Perk displays currencies in this order:
- Employee currency (when defined)
- Company currency (when defined)
- Receipt currency
If the currency is defined on the employee profile, only employee themselves see amounts in their employee-defined currency field. Assistants/approvers and Finance review see the currency in the company-defined currency.
If no currency is defined on the employee profile, all currencies are displayed using the company currency to everyone.
Posting currency
Perk stores the original amount and currency, and converts it using the applicable FX rate source to the reimbursement currency and amount of preference, depending on the company’s requirements:
- Employee-defined currency
- Company-defined currency
Exchange rates in Perk
In Perk, you can determine the exchange rate source used to calculate currency conversion. Regardless the source used, the conversion rate used is the rate for the day of the expense.
By default, Perk uses the exchange rates from: http://openexchangerates.org/
Tip: You can consult the applicable rate provided by Open Exchange Rates by signing up for a free Open Exchange Rates account.
Perk also supports external feeds for exchange rates such as CNB, NPB and NBS national bank rates.
In addition, you can import your own FX rate source using Perk’s API. If you do this, then the imported FX rate appears in the Exchange rates source dropdown list in Settings > Account > Companies, View spend settings, Exchange rate source.