FX Fees (foreign transaction fee)

Moss now supports FX fees accounting split on all your spend

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Written by Support
Updated over a week ago

When will the FX fees be applied?

When making a payment in a foreign currency with Moss, the FX fees will apply starting April 1st 2023.

How does the Moss FX fee work?

A foreign transaction fee or an FX fee is an extra cost added to your expense when you make a purchase that is in a currency other than your local currency.

A 2% FX fee will be applied to any transactions made in a different currency than the one on your default Moss account (i.e. EUR, GBP). The conversion rate applied is used by Mastercard.

To ensure there are no errors in our calculations or any extra fees wrongly imputed, you can use Mastercard's official website to obtain the final billed amount. Mastercard Currency Converter | Currency Exchange Rate Calculator.

Note: FX fees only apply to transactions made with Moss cards.

How the FX Fee is reflected in Moss and in your accounting system

There are two ways of how transaction with the FX Fee may be shown in Moss UI and may be exported to the accounting platform:

1. Simple mode

(FX Fee is included into the body of the transaction)

* Exchange rate includes the FX Fee.

Exporting to the accounting platform

The transaction is exported in 2 parts, the payment and the purchase:

  1. Payment: 299.01 EUR to the supplier account

  2. Purchase: 299.01 EUR to the expense account, this amount includes the FX Fee
    (sent as the original currency amount and the exchange rate, in our case as 318.64 USD and 0.9364 EURUSD rate)

* In case of the split transaction, the FX Fee amount is also split proportionally.

2. Advanced mode

(FX Fee is reflected on a separate account)

* Exchange rate doesn’t include the FX Fee, and the Converted amount is the amount without the FX Fee applied.

Exporting to the accounting platform

While the payment part of the transaction remains unchanged, two entries are created for the purchase part of the transaction:

  1. 293.15 EUR to the Expense account
    (sent as the original currency amount and the exchange rate, in our case as 318.64USD and 0.9200 EURUSD rate)

  2. 5.86 EUR to the FX Fee account specified
    (sent in home currency)
    FX Fee transaction will be attributed to the “Default Supplier Account” selected in the Accounting settings page in Moss.

* VAT is not applied to the FX Fee entry.

* In case of the split transaction all accounting attributes (supplier, cost center, cost carrier) are taken from the first split.

How to switch between Simple and Advanced modes

You can enable the Advanced mode by following the link on a banner prompting you to set up an FX Fee account.

or by filling the FX Fee account field in the Accounting settings page directly

If the FX Fee account is empty then the Simple mode is used otherwise the Advance mode applies.

Please note that if you’re using the “Advanced” mode then “Default Supplier Account” should be set up to reflect the FX Fee correctly.

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