Audience: All MineralTree Users
Summary: Reviews how multi-currency invoice processing and international payments work with MineralTree.
Topics covered:
- Multi-Currency Invoice Processing
- Multi-Currency International Payments
- International Check Payments
Multi-Currency Invoice Processing Overview
MineralTree supports multi-currency invoice processing. This feature enables users to process all English language invoices in MineralTree regardless of currency. Please click here for more information on international payment guidelines.
Setting up Multi-Currency
It's important to set up multi-currency correctly. There are several currency "types" that exist in relation to MineralTree and your accounting system.
Base Currency
The base currency is the currency that is used to manage your company's financials. There can only be one and it is set by MineralTree when setting up your company during the implementation process and should match what you have in your accountings system.
Company Currencies
The company currencies are set in your accounting system and should be all of the currencies that your organization will ever use to create and process invoices. These currencies do not sync over to MineralTree, but they do allow you to then create specific Vendor Currencies in your accounting system that will sync over to MineralTree for invoice creation and management.
Vendor Currencies
The vendor currencies are the currencies in which you allow invoices to be created. These are set in your accounting system for the individual vendors and will be available when creating an invoice for that particular vendor in MineralTree. NetSuite allows for multiple currencies per vendor and can then choose a default (see below). Other ERPs only allow for one vendor currency per vendor.
Default Vendor Currency
The default vendor currency is available for NetSuite and it's the currency to which invoices automatically default.
How It Works
The workflow in MineralTree for Multi-Currency Invoice Processing is a little different than the typical Invoice to Pay workflow.
Create an Invoice
You create an invoice in MineralTree the way you normally would through Invoice Capture or manually creating an invoice from the Inbox. When you create an invoice and choose a vendor, you'll be able to edit the currency on the invoice.
Click "Transaction Currency” to choose the currency for the invoice.
If you are using the Classic view, click “Edit Currency” and select the appropriate currency. Currencies sync from the ERP system, so if a specific currency is not listed, check the ERP to ensure it’s properly associated with the vendor.
The currency will default to the Default Vendor Currency (for NetSuite) or the Base Currency if you do not have a Vendor Currency assigned to the vendor in your ERP. When you edit the currency, you will have the option to choose from the available vendor currencies set in your ERP (NetSuite Only).
Approve an Invoice
Send the invoice to the invoice approver like you normally would. There are no changes that impact this part of the workflow.
Post an Invoice
Posting the invoice in MineralTree is your final step that you will take for a multi-currency invoice. Once the invoice is posted to the ERP, the exchange rate for that invoice is set by your ERP. The currency cannot be changed at this point in MineralTree.
Payment Authorization and Payment
Payment Authorization and payment processing for multi-currency invoices is done within the MineralTree application. Once complete, the paid status will sync over to your ERP and close out the invoice in both systems. Be sure to enable your bank accounts correctly by referencing this article.
The MineralTree Dashboard
The MineralTree dashboard will always show total values in the company's Base Currency. If totals from invoices are not from the base currency, we will convert that to the base for a true value using our exchange rate provider, Fixer (fixer.io). Whenever a value is converted, an "i" icon will appear to inform you of that.
International Payments Overview
International Payments are payments where the payer and payee are in separate countries and cannot use domestic payment types. This feature enables MineralTree customers to make use of the full Invoice to Pay process for multi-currency invoices. During the payment run, the payment authorizer will lock in a real-time exchange rate and route for payment from within the MineralTree application. Payment statuses are displayed in MineralTree throughout the payment process to make sure the customer has full visibility.
Setting Up International Payments
To make International Payments, MineralTree performs a compliance review of customers, works with customers to enable the preferred bank accounts, and partner with customers to assist in adding banking information for international vendors. You will also need to make sure your accounting system has been set up to work with multi-currency invoice processing by having the appropriate currencies established in your ERP.
Compliance Review
Customers making International Payments within MineralTree are subject to a compliance review. The compliance review requires MineralTree to collect information and documentation from customers to verify organization. Know Your Customer (KYC) procedures are essential to assess the risks of businesses and Anti-Money Laundering (AML) regulations.
Enabling Bank Accounts
Your bank accounts will be enabled for FX during your implementation process. Multiple bank accounts can be enabled for International Payments. If multiple bank accounts are enabled for International Payments, customers are able to select which payments will be paid from specific bank accounts.
Adding Vendor Bank Information
Foreign Exchange (FX) details can be added to International Vendors directly from the Vendor Profile. Customers can select the appropriate currency and the country where the International Vendor resides. Currencies displayed in the dropdown pull directly from your ERP, so if you don't see one it needs to be added to your accounting system. Depending upon the currency and country combination, different fields are required before the International Vendor can be saved. It is highly recommended to provide all available information even if it is not required.
Processing International Payments
International Payments will behave in much the same way as domestic payments with a couple of slight differences.
Payment Submission
Accounting Managers can submit payments as normal within MineralTree for their multi-currency invoices. International Payments will use the Payment Type titled “FX Payments” to move funds internationally. If there are multiple bank accounts enabled for International Payments, the Accounting Manager can determine which accounts will be used for specific payments.
Payment Authorization
Payment Authorizers are allowed to authorize 20 International Payments in a single payment batch. This is not inclusive of domestic payments in the same batch (which is ~500). Once International Payments are selected and the Payment Authorizer proceeds to confirmation, MineralTree will retrieve the International Payment exchange rates.
Please note that during the posting process your ERP already assigned an exchange rate to the invoice. If the new rate differs, your ERP will fix this by reconciling the difference in a gain/loss account when MineralTree sends payment data back to your ERP.
When the rates are retrieved, the Rate and Debited Amount will be presented for the Payment Authorizer. The Debited Amount is the amount that will be debited from the designated bank account. The Rate will refresh every minute and the new rates will reflect on the queued up payments.
International Payments are single approval payments. This means if you have dual approval turned on for payment authorization, only one of your authorizers will get to approve it. When the International Payments are submitted, the Rates and Debited Amounts are authorized.
Authorizing your payments can take up to 30 seconds to complete. Please do not close your browser or click the back button during this time. Upon successful submission, bank accounts will be debited immediately.
Payment Statuses
MineralTree provides greater visibility for International Payments than traditional banks. Inside the Payment Details, customers see the status of the International Payments. The possible statuses for International Payments are below:
In Process – Payment is in process and requires authorization;
Awaiting Funds – Payment has been authorized by customer. Awaiting funds from customer;
Funds Were Received – Funds have been received from customer and preparing to pay vendor;
Paid – Vendor has been paid
Rejected – Payment cancelled by customer or funds could not be delivered to vendor.
Email Notifications
Payment Authorizer Notifications
Payment Authorizers are notified via email for the International Payments that have been placed in their Payment Queue for submission. The currency of the International Payments are visible for the Payment Authorizer. A currency service is used to estimate the cash value in USD based on current exchange rates. Total Payment Value is subject to change.
Accounting Manager Notifications
Accounting Managers are notified via email when International Payments have been successfully submitted by the Payment Authorizer. The currency of the International Payments, Rate, and Debited Amounts are presented on the email. The Total Payment Value is the amount debited from the customer’s bank account.
Remittance Email
International Vendors receive notification emails from MineralTree with the amount paid and currency paid. For more information on how to configure remittance emails, please review this article.
International Check Payments
MineralTree allows for payments to international vendors as follows:
- All countries: You may send check payments in USD to vendors in any country.
-
Canada: MineralTree currently supports several types of payments to Canadian vendors.
- Checks in USD funds can be sent to Canadian addresses.
- Checks in CAD, if the pay-from account is with a Canadian bank, and the vendor accepts CAD payments. (NB: the MineralTree site will show the transaction as USD.) You must have a checking account with a Canadian bank and make your payment from that account.
- Check: You may send check payments in CAD or USD to Canadian vendors. Please note that all checks are mailed out from the same location in the eastern US, so delivery to Canadian addresses may take longer than our standard time.
- ACH in USD to a US branch of a Canadian bank.
The MineralTree application does not currently display foreign currency details. Any payment amount shown should be read in terms of that vendor and payment. For example, if you make a payment of 100.00 and choose to pay from a Canadian account on the MineralTree site, your vendor will receive CAD$ 100. If you make the same payment from a US account, the payment will be for USD $100.00.