Accounting Royalties in Multiple Currencies
With Curve, you can report to your songwriters in differing currencies. This will allow you to upload income in multiple currencies, setting exchange rates for conversion into each currency, before setting any exchange rates missing at the point of calculation. This will ensure that $1 in reports out as $1 & is not subject to multiple conversions before royalty calculation.
To utilise multicurrency, head into your Settings > General area. On the configuration tab, you have options to set up to three extra currencies in addition to your home currency.
Once you have enabled multicurrency, this will affect your setup in the following three touchpoints on Curve.
In your Contract, you will now gain the ability to specify in which currency you wish to report to your songwriter. Once a currency has been set, all the statements and transactions created for this Contract will be in this currency. Make sure you consider this if changing any pre-existing contracts to a new currency. When a client opts to be paid in a different currency moving forward, it may be best practice to make the original Contract inactive and set up a new Contract entirely for this client in their new preferred currency.
Via the setup page of your income file, you are now also able to set additional currency exchange rates from the file's currency to your multi-currencies. Setting an exchange rate to your multi-currencies allows Curve to apply a direct exchange rate when calculating the royalties of multi-currency Contracts.
In the below example we set an exchange rate from EUR (the file's currency) to USD. Any income for a USD contract will be applied the direct EUR to USD exchange rate in the royalty calculation. If no EUR to USD exchange rate were to be set, Curve would need to calculate royalties for the USD Contracts indirectly via the file's EUR to Home Currency exchange rate and our Period's Home Currency to USD exchange rate.
Please note that the income file has to be reingested after any new exchange rates are added, to make sure these are stored on the individual income lines.
Creating a Period
When running a Period you can set your final exchange rates. These will be used should there be any rates not set at the point of ingestion & crucially these are the rates used to convert from your Home Currency into each contract’s specific currency.
The currency exchange rates you are required to complete are automatically loaded at the bottom of your Period setup. By default, we will set the current exchange rates at the time of Period creation, but you can update these exchange rates as you please.