Learn what an alternate currency is in RMS, how exchange rates and Transaction Options affect accounts, and when this feature is right for your property.

Overview

Alternate Currency allows a property to work in two currencies at the same time while keeping a consistent accounting base. This article explains the core concepts behind Alternate Currency in RMS, including Local and Alternate Currency, Foreign Exchange Rates, Rate Currency, Account Currency, and Currency View. It also describes how Exchange Rate behaviour and Transaction Options affect accounts, where currencies can be used in RMS, and common scenarios where enabling Alternate Currency is appropriate.

At the end of the article, you'll find practical examples and best-practice guidance to help you decide whether Alternate Currency is suitable for your property and how to avoid common configuration pitfalls.

To learn how to configure Alternate/Secondary Currency, see Alternate / Secondary Currency (Setup).

Key Concepts

Local Currency

The Local Currency is the base currency of the property. It is determined by the country set for the property in Setup > Property Options > Property Information, and is used by default for accounting and reporting. If the alternate currency is not enabled, all accounts and transactions are handled in the Local Currency.

Alternate Currency (Secondary Currency)

The Alternate Currency is the second currency the property can use alongside the Local Currency. It is enabled by selecting Use Secondary Currency on the property in Setup > Property Options > Property Information, and can be used for rate tables, account balances, and entering receipts and sundry charges.

This article refers to the feature as Alternate Currency, while the RMS interface uses the label Secondary Currency. Wherever you see Use Secondary Currency in the system, it relates to Alternate Currency.

Foreign Exchange Rate Record vs Exchange Rate Value

A Foreign Exchange Rate record defines the Alternate Currency for a property. It includes the currency code (such as USD, EUR, HKD, or CNY), a descriptive name, the currency symbol, and the numeric exchange rate that RMS uses for conversions.

To keep terminology clear:

• The Foreign Exchange Rate record is the configuration object in RMS that stores the currency code, name, symbol, and rate.

• The Exchange Rate value is the numeric conversion factor stored on that record.

The Exchange Rate value is a static value you enter. The Exchange Rate behaviour (Dynamic or First Transaction) controls how and when RMS applies that static value.

Rate Currency

The Rate Currency is the currency used by a Rate Table for a particular Rate Type. A Rate Table can be configured in either the Local Currency or the Alternate Currency. The currency you choose becomes the Rate Currency and influences both the default Account Currency and the initial Currency View on accounts created from that Rate Type.

Account Currency

The Account Currency is the currency in which RMS stores and posts transactions on an account. It is determined by the combination of the Rate Currency and the Transaction Option selected in the Alternate Currency setup. Even if a transaction is entered on screen in another currency, RMS converts it and stores it in the Account Currency when the transaction is processed.

Currency View

Currency View controls the currency used to display values on accounts and on guest-facing documents such as receipts, statements, and tax invoices.

Account Currency is the posting and storage currency; Currency View is the display and document currency. RMS always posts transactions in the Account Currency. Currency View can show equivalent amounts in the other currency, and depending on the Transaction Option, may allow users to switch between Local and Alternate Currency.

Exchange Rate Behaviour

Alternate Currency supports two ways of applying the Exchange Rate value from the Foreign Exchange Rate record: Dynamic Exchange Rate and First Transaction Exchange Rate.

Dynamic Exchange Rate

With a Dynamic Exchange Rate, the Foreign Exchange Rate record still stores a static numerical rate, but RMS reads this rate each time a new transaction is created. When you update the Exchange Rate value on the record, any new transactions created after that point use the updated rate.

When a user switches Currency View on an account that is using Dynamic Exchange Rate, RMS recalculates the account's balances in the selected display currency based on the current rate. If the rate has changed since earlier transactions were created or if rounding differences occur, RMS may post Currency Adjustment transactions to keep the totals correct.

First Transaction Exchange Rate

With First Transaction Exchange Rate, RMS takes a snapshot of the Exchange Rate value at the moment the first transaction is created on an account. That rate is then locked for that account. All subsequent transactions on the same account use this locked rate, even if you later change the Exchange Rate value on the Foreign Exchange Rate record.

Changes to the Foreign Exchange Rate record affect only accounts that are created after the change. Existing accounts keep the rate that applied when their first transaction was posted.

Warning about locked rates

First Transaction Exchange Rate is useful when you need a fixed rate for the life of an account, for example, for long-term contracts. However, it also means that accounts created at different times may use different rates. If exchange rates are updated frequently, you may end up with similar accounts using different conversion rates, which has implications for reporting and reconciliation.

Transaction Options

Transaction Options control which currency RMS uses as the Account Currency and whether users can change the Currency View on accounts. They also influence how receipt and sundry charge entries behave in practice.

Transaction Options Overview

On receipt and sundry charge screens, users may still be able to select the entry currency. Regardless of the entry currency on screen, RMS converts the amount using the configured exchange rate behaviour and stores it in the Account Currency when the transaction is processed.

Where Currencies Can Be Used

When an alternate currency is configured, it affects several areas of RMS:

• Rate Tables can be created in either Local Currency or Alternate Currency. The chosen currency becomes the Rate Currency used for pricing.

• Sundry Charges & Requirements on Rate Tables are entered in the Rate Currency and converted as needed based on your Exchange Rate behaviour.

• Exclusive Taxes (such as flat amounts or per-person amounts) can be defined in Local or Alternate Currency to match how you price.

• Accounts display balances and transactions according to the current Currency View, while transactions are stored in the underlying Account Currency.
  
  
   

• Receipts, Statements, and Tax Invoices show values in the currency set by Currency View, matching what guests or owners see on their documents.
  
  
  
   

Channel Manager and Alternate Currency

The Channel Manager and Alternate Currency are related but independent features.

Channel Manager Currency settings control the currency used when sending rates to online travel agents and other external channels. It is possible to send rates in a different currency through the Channel Manager even if Alternate Currency is not enabled on the property.

Alternate Currency, on the other hand, controls how currencies are stored, displayed, and used for transactions within RMS itself, including accounts, receipts, and invoices.

For detailed steps on sending rates to channels in a different currency, refer to the separate article on sending rates to a channel in a different currency. Channel Manager Currency
 

Using Alternate Currency

Rates and bookings

Once the alternate currency is enabled, Rate Tables can be created in either currency. When you create or edit a Rate Table, you select the currency that you want to use for pricing. That choice becomes the Rate Currency and influences the default Account Currency for bookings that use that Rate Type, based on the Transaction Option you selected.

Accounts and Currency View

On each account, you can see which currency it is stored in and which Currency View is in effect. If the Transaction Option is set to Always Use Rate Currency or Always Use Local Currency, the Currency View will generally be locked to that currency. If the Transaction Option is Switch Between Currencies, users can change the Currency View between Local and Alternate Currency as needed.

When a user changes the Currency View, RMS recalculates the account values in the chosen display currency using the appropriate exchange rate. With Dynamic Exchange Rate, this will be the current Exchange Rate value, and Currency Adjustments may be posted when there are differences caused by rate changes or rounding.

Receipts and sundry charges

Receipts and sundry charges can often be entered in either the Local Currency or the Alternate Currency, depending on screen options. A front desk operator may, for example, take payment in a guest's preferred currency even if the account itself is stored in another currency.

When the transaction is processed, RMS converts the entered amount using the configured Exchange Rate behaviour, stores it in the Account Currency, and then displays it according to the current Currency View. This ensures a consistent accounting base while still allowing operational flexibility.

Examples

Example: Always Use Rate Currency

Scenario
The property's Local Currency is EUR, and the Alternate Currency is USD. The property has a corporate contract where all Rate Tables are created in USD, so the Rate Currency is USD. In the Alternate Currency setup, the Transaction Option is set to Always Use Rate Currency.

Result

• Accounts for those bookings are stored in USD.

• A guest pays in EUR at the front desk:

  • The operator enters the payment in EUR on the receipt screen.

  • When processed, RMS converts the EUR amount to USD using:

    • The current Exchange Rate (Dynamic), or

    • The locked rate (First Transaction).

  • The transaction is stored in USD, and the account balance and documents remain in USD, matching the contract currency.

Example: Switch Between Currencies with Dynamic Exchange Rate

The property's Local Currency is AUD, and the Alternate Currency is USD. The Foreign Exchange Rate record is configured so that 1 USD equals 1.10 AUD. The Transaction Option is set to Switch Between Currencies, and the Exchange Rate behaviour is set to Dynamic Exchange Rate. A booking is created using a Rate Table priced in USD, and a charge of USD 100 is posted to the account.

Result

• In Currency View = USD, the account shows a charge of USD 100.00.

• In Currency View = AUD, the same charge appears as approximately AUD 110.00, based on the current Exchange Rate value.

• Later, the Exchange Rate value is updated so that 1 USD equals 1.20 AUD:

  1. Any new transactions and Currency View recalculations use the new rate.

  2. When a user switches the Currency View again or posts new charges, RMS may create Currency Adjustment transactions so that the account totals remain consistent with the updated conversion rules.

• This setup allows staff to switch the display between AUD and USD while Dynamic Exchange Rate keeps future transactions aligned with current rates.

Best Practices and Error Avoidance

When to enable Alternate Currency

Alternate Currency is most useful when:

• You frequently handle international guests paying in another currency.

• You operate in border regions where guests expect prices in a neighbouring currency.

• You manage corporate, owner, or long-term contracts priced in a non-local currency.

In these cases, you can keep your accounting base in Local Currency while pricing and presenting documents in another currency.

Choosing Exchange Rate behaviour

• Dynamic Exchange Rate
  Best when you want balances and new transactions to reflect current market rates. Expect Currency Adjustments as rates change and the |Curreny View is recalculated.

• First Transaction Exchange Rate
  Best when each account should keep a fixed rate for its lifetime (for example, a fixed-rate contract). Be aware that similar accounts opened at different times may use different rates, which can affect reporting and comparisons.

Choosing a Transaction Option

Align the Transaction Option with how you report and operate:

• Always Use Local Currency
  Simplifies accounting by keeping everything in the Local Currency.

• Always Use Rate Currency
  Keeps specific products or contracts entirely in the Rate Currency (for example, USD contracts for corporate or wholesale).

• Switch Between Currencies
  Gives staff flexibility to view and print in both currencies, but adds complexity due to Currency View changes and possible adjustments.

Implementation tips

• Start with a test property or pilot group of accounts.

• Involve your finance team early to:

  • Confirm the Adjustment GL account.

  • Review sample postings and Currency Adjustments.

• Check that:

  • Statements and tax invoices show the correct currency.

  • Reports still meet your internal and external requirements.

How to Configure

See Alternate / Secondary Currency (Setup).