There are several nuances to how foreign currency transactions are handled in Yokoy, depending on your company's location and your company card provider. In this article, we'll answer some of the most commonly asked questions about foreign currency transactions and give guidance on how to manage them best. You can jump directly to each question answered in this article using the following bullet points.
Why are my transactions in a different currency than my expense reports?
Yokoy converts all expense amounts in foreign currencies to your company currency. However, for transactions, currency conversion is dependent on your company card provider, meaning that it may occur that the transaction and corresponding expense report are listed in separate currencies.
Why do the expense amount and transaction amount differ from each other?
When converting foreign currency expense amounts, Yokoy uses a different approach to conversion than company card providers do. At the same time, company card providers may add transaction fees to any foreign currency transactions you make using your company card.
These two factors may lead to minor differences when comparing the transaction amount, converted and calculated by your card provider, to the the expense amount, converted and calculated by Yokoy.
However, this difference does not prevent the transactions from being automatically or manually matched in Yokoy so long as it isn't significant. If, after submission of an expense, you realize that the difference is too significant for a matching to occur, simply recall the expense report, add a Comment to draw attention to the outstanding match, and resubmit it. Your Finance Team will be able to handle the transaction-expense report pair after resubmission.
Why do some transactions include the foreign currency fee, whereas other transactions separate it?
The way foreign currency fees are handled is dependent on the banking provider of your company card. At some banks, this fee is combined with the original transaction amount, but at others, they may create separate charges for the transaction amount and the foreign currency fee.
Your company will provide you guidance on how to handle separate foreign currency fees on transactions if they occur; generally, one of the two methods outlined below will be applied.
How can I handle transactions with a separate foreign currency fee?
As stated, how foreign currency fee transactions are handled is dependent on your company-specific policies. The two main methods are:
Creating and submitting the expense report twice, with the first expense report being matched to the corresponding transaction and the second expense report being manually matched to the foreign currency fee transaction. This will generate a duplicate warning on the expense reports, but submission is possible nonetheless.
Creating an expense report with your receipt, which will match to the main transaction after submission, and then creating an expense report without receipt for the foreign currency fee transaction to be matched to.
The exact steps of manual matching and creating an expense report without receipt for a transaction can be found under Step 4 of the transaction matching article.
Note: While these are the most common methods of handling separate foreign currency fee transactions in Yokoy, there are several alternatives. Therefore, please check your company-specific policies before taking an approach to foreign currency fee transactions in Yokoy.