Audience: Accounting Manager or Invoice Approver (with permission to code invoices)
Summary: Reviews how to enable bank accounts for international payments, add bank account information for international vendors, and process international payments.
Supported ERPs: QuickBooks Online, Xero, NetSuite and Universal Connector
This article covers:
- Introduction to International Payments
- Setting Up International Payments
- Processing International Payments
- Email Notifications
Introduction to International Payments
International Payments are payments where the payer and payee are in separate countries and cannot use domestic payment types. This feature enables MineralTree customers to make use of the full Invoice to Pay process for multi-currency invoices. During the payment run, the payment authorizer will lock in a real-time exchange rate and route for payment from within the MineralTree application. Payment statuses are displayed in MineralTree throughout the payment process to make sure the customer has full visibility.
Setting Up International Payments
To make International Payments, MineralTree performs a compliance review of customers, works with customers to enable the preferred bank accounts, and partner with customers to assist in adding banking information for international vendors. You will also need to make sure your accounting system has been set up to work with multi-currency invoice processing by having the appropriate currencies established in your ERP.
Customers making International Payments within MineralTree are subject to a compliance review. The compliance review requires MineralTree to collect information and documentation from customers to verify organization. Know Your Customer (KYC) procedures are essential to assess the risks of businesses and Anti-Money Laundering (AML) regulations.
Enabling Bank Accounts
Your bank accounts will be enabled for FX during your implementation process. Multiple bank accounts can be enabled for International Payments. If multiple bank accounts are enabled for International Payments, customers are able to select which payments will be paid from specific bank accounts.
Adding Vendor Bank Information
Foreign Exchange (FX) details can be added to International Vendors directly from the Vendor Profile. Customers can select the appropriate currency and the country where the International Vendor resides. Currencies displayed in the dropdown pull directly from your ERP, so if you don't see one it needs to be added to your accounting system. Depending upon the currency and country combination, different fields are required before the International Vendor can be saved. It is highly recommended to provide all available information even if it is not required.
Processing International Payments
International Payments will behave in much the same way as domestic payments with a couple of slight differences.
Accounting Managers can submit payments within MineralTree for their multi-currency invoices. International Payments will use the Payment Type titled “FX Payments” to move funds internationally. If there are multiple bank accounts enabled for International Payments, the Accounting Manager can determine which accounts will be used for specific payments.
Payment Authorizers are allowed to authorize 20 International Payments in a single payment batch. This is not inclusive of domestic payments in the same batch (which is ~500). Once International Payments are selected and the Payment Authorizer proceeds to confirmation, MineralTree will retrieve the International Payment exchange rates.
Please note that during the posting process your ERP already assigned an exchange rate to the invoice. If the new rate differs, your ERP will fix this by reconciling the difference in a gain/loss account when MineralTree sends payment data back to your ERP.
When the rates are retrieved, the Rate and Debited Amount will be presented for the Payment Authorizer. The Debited Amount is the amount that will be debited from the designated bank account. The Rate will refresh every minute and the new rates will reflect on the queued up payments.
International Payments are single approval payments. This means if you have dual approval turned on for payment authorization, only one of your authorizers will get to approve it. When the International Payments are submitted, the Rates and Debited Amounts are authorized.
Authorizing your payments can take up to 30 seconds to complete. Please do not close your browser or click the back button during this time. Upon successful submission, bank accounts will be debited immediately.
MineralTree provides greater visibility for International Payments than traditional banks. Inside the Payment Details, customers see the status of the International Payments. The possible statuses for International Payments are below:
In Process – Payment is in process and requires authorization;
Awaiting Funds – Payment has been authorized by customer. Awaiting funds from customer;
Funds Were Received – Funds have been received from customer and preparing to pay vendor;
Paid – Vendor has been paid
Rejected – Payment cancelled by customer or funds could not be delivered to vendor.
Payment Authorizer Notifications
Payment Authorizers are notified via email for the International Payments that have been placed in their Payment Queue for submission. The currency of the International Payments are visible for the Payment Authorizer. A currency service is used to estimate the cash value in USD based on current exchange rates. Total Payment Value is subject to change.
Accounting Manager Notifications
Accounting Managers are notified via email when International Payments have been successfully submitted by the Payment Authorizer. The currency of the International Payments, Rate, and Debited Amounts are presented on the email. The Total Payment Value is the amount debited from the customer’s bank account.
International Vendors receive notification emails from MineralTree with the amount paid and currency paid. For more information on how to configure remittance emails, please review this article.