In this article, you will learn how to utilize the Multi-Currency/FX Billing feature. To learn more about the configuration of this feature, please see this article. You can also refer to the video embedded below for a quick overview.
Multi-Currency Billing is the process of billing to a client in a different currency. It works by applying a currency conversion to your base currency. To be clear, it is not designed for firms that bill in foreign currencies but receipt payments in the base currency. It is designed for firms that have bank accounts in more than one currency.
You'll want to start by accessing a specific matter. Within the specific matter, access the matter billing options. At the bottom of this page, you'll see a toggle for 'FX Billing', which you can switch to 'On' to enable FX billing for that matter.
You can then assign a conversion rate to that matter, which will convert the value of any time entries or expenses you record against the matter.
Once the conversion rate has been assigned to the matter, it will be applied against any time entries you create for that matter, as per the screenshot below.
|Note: Amounts billed to disbursements from supplier/vendor invoices will always be in base currency.|
This is the method for entering Foreign Exchange Hedges into Actionstep.
In a nutshell, you represent the hedge as a purchase of the foreign exchange (FX) cover from the bank as an FX purchase invoice at the agreed-upon hedge rate (which should be the rate the sale was recorded at). You simultaneously record a sale to the bank of the base currency amount of the hedge (which should be the base currency value of the sale invoice if fully covered by the hedge). This will "float" with the sale invoice and offset any gain/loss.
On the day that payment is received you pay the sale invoice and both purchase invoices to the bank.
Example (Base Currency NZD)
If you have a US sale for US$1,000 on 17th July when the rate is 2.00 it will result in a NZ$2,000 sale. You receive payment on 20th August when the exchange rate is 1.25 resulting in a NZ$750 FX loss (if unhedged).