1 Multiple Currencies
2 Demo:
- - 2.1.1 Company
  - 2.1.2 Exchange Rates
  - 2.1.3 Exchange Rate Definitions
- 2.2 Group Set Up
  - 2.2.1 Adding Services
  - 2.2.2 Cost Summary
  - 2.2.3 Departure Dates and Prices
- 2.3 Booking the Package

Multiple Currencies

Softrip offers support for businesses to sell their Products in multiple currencies. Because the currency in which a business will operate and execute its taxes can generally only be one currency Softrip will use exchange rates to allow you to sell and quote Reservations in a different currency.

This process will involve many different set up processes within Softrip with relation to the Accounting and Product menus. It’s best to review the accompanying articles.

Note: Learn more about Exchange Rates, Company set up, and Service Rates here:

Demo:

A business operates in USD, but will be selling a Custom Group in CAD

Company

In the example below the Base Currency, or Base Selling Currency, the currency in which all financials will be produced in, is set to USD

Exchange Rates

The Exchange Rates for USD to CAD are set up in that 1 US Dollar = 1.25 CAD using the Quote Currency (Q)

Exchange Rate Definitions

Quote currency - Sets up the booking for the amount the passengers or agencies are going to pay. This is either setup in a monthly or annually fashion.
- This currency is only used at time of booking (whenever the booking is created through reservations)
- Applies to the payments that the company will receive from their passengers.
- Once the booking is created, the exchange rate is locked in on that booking for the initial payment and any payment that occurs on that booking in the future.
Cost currency - cost currency relates to the services added into the application. This is the expected exchange rate to be in the future at the time of departure. This exchange rate would generally be applied when the suppliers are being paid.
- This currency is setup in the product setup
Pay currency - The exchange rate that would be applied when the suppliers are being paid. This is an actual exchange rate.
- This currency relates any time a user uses the payables screen in accounting

Group Set Up

When building the Group Header the system will require a Currency to be selected. In this example CAD is the Quote Currency

Setting the Currency in the Group Header will set the PKG Item Currency to CAD, the Pricing Profile Quote Currency to CAD, and the Departure Date Records to CAD:

PKG Service

Pricing Profile

Departure Dates

Adding Services

Once you begin adding Services to the Group that have a different Currency the system will begin to display the Local Cost, the Cost the Service is set up in, and the Exchange Rate in relation to the Base Currency, which in this example is USD.

Two Hotels were added to this Group that are set up in with a USD Cost Currency and one with EUR Cost Currency.

The Exchange Rate column will show

CAD as .8 as that is the exchange from CAD to USD,
EUR as 1.2 as that is the Exchange Rate from EUR to USD
USD 1 as that is the Exchange Rate from USD to USD

If you want to see the Cost in the Quote Currency (CAD) select the filter icon and select “Show Costs in Selected Currency” and select “Show Costs”

The system will use the Quote Exchange Rates from the Exchange Rates Table to convert the Cost from USD and EUR to CAD

800 USD x 1.25 CAD Quote Currency = 1000 CAD
400 USD x 1.25 CAD Quote Currency = 500 CAD
150 EUR x 1.2 USD Cost Currency x 1.25 CAD Quote Currency = 225 CAD
- Because there is no direct exchange rate from EUR to CAD the system will first change the EUR Cost to USD and then use the CAD Quote Currency

Cost Summary

Once all the Services have been added into the Product select “Service Costing” → “Cost Summary” to review the costs of your Services in the Quote Currency. The system will take the Local Cost and using the Exchange Rates convert it to CAD.

This should be the same total used when we converted the Hotel Costs to CAD

800 USD x 1.25 CAD Quote Currency = 1000 CAD
400 USD x 1.25 CAD Quote Currency = 500 CAD
150 EUR x 1.2 USD Cost Currency x 1.25 CAD Quote Currency = 225 CAD

Departure Dates and Prices

When calculating Departure Dates and Prices the system will take the Total Costs in CAD and use the Mark Up in the Pricing Profile to calculate the Total Price in CAD that the Passenger or Agent will see when they go to book this Package.