> ## Documentation Index
> Fetch the complete documentation index at: https://alguna.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Multi-Currency Billing

> Bill customers in their local currencies

# Multi-Currency Billing

Alguna supports billing customers in their preferred currencies. Set prices in multiple currencies, handle FX conversions, and manage settlement across different currencies.

***

## How Multi-Currency Works

| Step                         | What Happens                                             |
| ---------------------------- | -------------------------------------------------------- |
| **1. Set Customer Currency** | Each customer has a preferred currency (e.g., EUR)       |
| **2. Invoice Generated**     | Invoice is created in the customer's currency            |
| **3. Payment Collected**     | Customer pays in their currency                          |
| **4. Settlement**            | Funds settle to your bank in your settlement currency    |
| **5. Revenue Recognition**   | Revenue recorded in your functional (reporting) currency |

***

## Setting Up Currencies

### Configure Your Currencies

Navigate to **Settings → Currencies** to configure:

| Setting                   | Description                                 | Example                 |
| ------------------------- | ------------------------------------------- | ----------------------- |
| **Default Currency**      | Currency for new customers if not specified | USD                     |
| **Supported Currencies**  | Currencies you can bill in                  | USD, EUR, GBP, CAD, AUD |
| **Settlement Currencies** | Currencies you receive funds in             | USD, EUR                |
| **Functional Currency**   | Your reporting currency                     | USD                     |

### Set Customer Currency

When creating or editing a customer:

1. Navigate to **Customers → \[Customer]**
2. Edit the customer profile
3. Set **Currency** to their preferred currency
4. Save

All invoices for this customer will be in their currency.

***

## Multi-Currency Pricing

### Option 1: Set Prices Per Currency

Set explicit prices for each currency (recommended for control):

| Currency | Monthly Price | Annual Price |
| -------- | ------------- | ------------ |
| USD      | \$99          | \$990        |
| EUR      | €89           | €890         |
| GBP      | £79           | £790         |
| CAD      | \$129         | \$1,290      |

Configure in **Products → \[Product] → Pricing** or **Plans → \[Plan] → Pricing**.

### Option 2: Automatic Conversion

If you don't set a price for a currency, Alguna converts from your base currency:

| Base Price (USD) | Target Currency | FX Rate | Converted Price |
| ---------------- | --------------- | ------- | --------------- |
| \$99             | EUR             | 0.92    | €91.08          |
| \$99             | GBP             | 0.79    | £78.21          |
| \$99             | CAD             | 1.35    | \$133.65        |

Configure conversion settings in **Settings → Currencies → Conversion**.

***

## Exchange Rates

### FX Rate Sources

| Source              | Description                     | When to Use      |
| ------------------- | ------------------------------- | ---------------- |
| **Daily Rates**     | Updated daily from market rates | Standard billing |
| **Manual Override** | Set your own rates              | Contracted rates |

### Rate Locking

Choose when to lock the exchange rate:

| Option           | Description                   | Risk                           |
| ---------------- | ----------------------------- | ------------------------------ |
| **Invoice Date** | Lock when invoice is created  | Low - rate known at billing    |
| **Period Start** | Lock at billing period start  | Low - consistent within period |
| **Payment Date** | Convert when payment received | High - rate can change         |

Configure in **Settings → Currencies → FX Rate Settings**.

***

## Invoicing

### Invoice Example

An invoice for a European customer:

| Line Item          | Amount      |
| ------------------ | ----------- |
| Pro Plan - Monthly | €89.00      |
| Subtotal           | €89.00      |
| VAT (19%)          | €16.91      |
| **Total**          | **€105.91** |

### FX Information on Invoice

If you display settlement information:

|                   | Customer Currency | Settlement Currency        |
| ----------------- | ----------------- | -------------------------- |
| Invoice Amount    | €105.91           |                            |
| Exchange Rate     |                   | 1.087 (as of invoice date) |
| Settlement Amount |                   | \$115.12                   |

***

## Settlement

### How Settlement Works

| Customer Pays | You Settle In | Conversion                                 |
| ------------- | ------------- | ------------------------------------------ |
| EUR           | EUR           | No conversion (if you have EUR settlement) |
| EUR           | USD           | Converted at settlement rate               |
| GBP           | USD           | Converted at settlement rate               |
| USD           | USD           | No conversion                              |

### Configure Settlement Routing

Navigate to **Settings → Currencies → Settlement**:

| Invoice Currency | Settles To | Bank Account        |
| ---------------- | ---------- | ------------------- |
| EUR              | EUR        | Deutsche Bank (EUR) |
| GBP              | USD        | Chase (USD)         |
| CAD              | USD        | Chase (USD)         |
| USD              | USD        | Chase (USD)         |

***

## Revenue Recognition

Revenue is always recognized in your functional (reporting) currency.

### FX Conversion for Recognition

|                             | Invoice Currency | Functional Currency |
| --------------------------- | ---------------- | ------------------- |
| Invoice Amount              | €1,000           |                     |
| FX Rate at Invoice          |                  | 1.10                |
| Revenue Recognized          |                  | \$1,100             |
| Monthly Recognition (12 mo) |                  | \$91.67             |

### FX Gains and Losses

Currency fluctuations between invoice and payment create gains or losses:

|              | At Invoice | At Payment | Difference  |
| ------------ | ---------- | ---------- | ----------- |
| Amount (EUR) | €1,000     | €1,000     |             |
| FX Rate      | 1.10       | 1.08       |             |
| USD Value    | \$1,100    | \$1,080    | (\$20) loss |

View FX gain/loss in **Reports → FX Gain/Loss**.

***

## Reports

### Revenue by Currency

Navigate to **Reports → Revenue**:

| Currency  | Revenue   | In USD (Functional) |
| --------- | --------- | ------------------- |
| USD       | \$125,000 | \$125,000           |
| EUR       | €45,000   | \$48,960            |
| GBP       | £22,000   | \$27,940            |
| **Total** |           | **\$201,900**       |

### Invoices by Currency

| Currency | Invoices | Total Invoiced | Paid      | Outstanding |
| -------- | -------- | -------------- | --------- | ----------- |
| USD      | 450      | \$125,000      | \$118,000 | \$7,000     |
| EUR      | 120      | €45,000        | €42,000   | €3,000      |
| GBP      | 85       | £22,000        | £20,500   | £1,500      |

***

## Customer Portal

Customers see everything in their currency:

| What They See        | Currency       |
| -------------------- | -------------- |
| Invoice amounts      | Their currency |
| Subscription pricing | Their currency |
| Credit balance       | Their currency |
| Payment history      | Their currency |

***

## Common Scenarios

### European Expansion

1. Add EUR and GBP to supported currencies
2. Set EUR and GBP pricing for products
3. Add EUR settlement account (optional)
4. Configure EU tax rules

### Regional Pricing

Adjust prices for purchasing power:

| Region | Currency | Pro Plan | Discount vs USD |
| ------ | -------- | -------- | --------------- |
| US     | USD      | \$99     | -               |
| Europe | EUR      | €89      | \~10% less      |
| UK     | GBP      | £79      | \~10% less      |
| India  | INR      | ₹4,999   | \~50% less      |

***

## Best Practices

<CardGroup cols={2}>
  <Card title="Set Explicit Prices" icon="tag">
    Set prices for each currency rather than relying on conversion.
  </Card>

  <Card title="Lock Rates Early" icon="lock">
    Lock FX rates at invoice date to avoid payment risk.
  </Card>

  <Card title="Monitor FX Impact" icon="chart-line">
    Track FX gains/losses for financial planning.
  </Card>

  <Card title="Local Payment Methods" icon="credit-card">
    Enable local payment methods for better conversion.
  </Card>
</CardGroup>

***

## Next Steps

<CardGroup cols={2}>
  <Card title="Currency Setup" icon="gear" href="/getting-started/currencies">
    Initial currency configuration.
  </Card>

  <Card title="Revenue Recognition" icon="chart-pie" href="/revenue/recognition">
    Multi-currency revenue recognition.
  </Card>
</CardGroup>