Currency Behavior in the Order Management Panel
When billing amounts vary due to currency settings. This article explains how currency behavior works in the order management panel.
When you setup your reseller account on our platform, you are required to set your Selling Currency and Accounting Currency.
Selling currency is the currency in which you will be selling products. This is the currency in which you will set your selling prices and all your customers and sub-resellers will make payments to you in this currency only.
All transactions (invoices, receipts, debit and credit notes) between you and your customers/sub-resellers will be in this currency.
Accounting currency is the currency in which you maintain your books of accounts. This is only for accounting purpose and has no real impact on the actual revenue you generate.
Note: You're allowed to change your selling and accounting currencies only if you haven't done any transactions. It is not possible to change currencies after you've done your first transaction on our platform.
When you set two different currencies (e.g. USD for selling and INR for accounting) then you will see two additional columns in the transaction report for your customers and sub-resellers. In one of these additional columns, you will see the transaction amount in your accounting currency and in the other column, you will see the forex difference.
Forex difference:
When a customer places an order, an invoice is raised in your selling currency, but you would record this sale in your books of accounts in your accounting currency. If the customer makes the payment on the same date, then there will be no forex difference as the exchange rate would be the same throughout the day. But if the customer pays on a later date, then the exchange rate might have changed which would lead to a forex gain or loss.
For example, consider this scenario:
A customer places an order for registration of xyz.com domain name on 10th November 2016
Notes:
- Your Selling Currency is USD
- You Accounting Currency is INR
- Your selling price for the domain is USD 10.00
Assuming that the USD/INR exchange rate on 10th November 2016 was 0.01492, the invoice amount in your accounting currency would be INR 670.24
If the customer makes the payment on 10th November itself, then there will be no forex difference. But if the customer makes the payment on the next day, then the exchange rate would have changed leading to a forex gain or loss.
Let's assume that the exchange rate on the next day dropped to 0.01449, then the receipt amount in INR would be 690.13. So there's a forex difference of INR 19.89 which will show up as Forex Gain because you've gained an additional profit of INR 19.89 in your accounting currency.
Similarly, if the forex difference is a negative amount, you would see it as Forex Loss.
About Cost Price:
Just how your customers and sub-resellers deal with you in your selling currency, you, in turn, deal with your parent reseller in the selling currency that your parent reseller has chosen.
Irrespective of what your selling and accounting currency is, your cost price and debit account balance will always be in the parent reseller's selling currency.
Also, the Balance Summary section in the reseller control panel shows the balance summary in parent reseller's selling currency. This also includes the debit account balance.
For example, if you have set USD as your selling currency and INR as your accounting currency, but your parent reseller's selling currency is CHF, then you will be required to make payments to your parent reseller in CHF and not in USD or INR.
If your parent reseller accepts offline payments in other currencies, they would convert the same and credit your account with an equivalent amount in CHF. Your cost price for all the products that you sell on our platform would be in CHF only.