Currency & Tax Configuration Guide

Configure your Kaptio foundation with the right currency setup, exchange rate strategy, and tax handling. Learn inclusive vs exclusive tax models, set up tax profiles, and validate your financial configuration.

Version 14 min read | January 12, 2026 Gallery

Overview

Currency and tax configuration form the financial backbone of your Kaptio platform. These settings determine how you price products, calculate margins, generate invoices, and report financials. This guide covers the foundation-level setup for both.

Prerequisites

Before configuring currencies and tax:

  • Business Units and Sales Channels configured
  • Admin access to Kaptio Setup
  • Clarity on your operating model:
    • What currencies do you buy and sell in?
    • Do you operate with tax-inclusive or tax-exclusive pricing?
    • What tax jurisdictions do you serve?

Part 1: Currency Configuration

Understanding Currency Layers

Kaptio uses currencies at multiple levels:

LevelPurposeExample
Business Unit DefaultPrimary operating currencyUSD
Supported CurrenciesAdditional selling currenciesEUR, GBP
Currency BooksMulti-currency financial trackingUSD Book, EUR Book
Exchange RatesConversion between currenciesUSD→EUR: 0.92
Currency Flow Model💰 Cost Currencies€ EUR£ GBP฿ THB🔄Currency BookExchange RatesFX Margin Buffer💳 Sell Currencies$ USD€ EUR£ GBPSupplier CostsConversion + MarginCustomer Prices💡 Buy Rate ≠ Sell Rate → Build in FX margin protection

Step 1: Define Your Currency Strategy

Answer these questions before configuring:

QuestionImpact
What is your base currency?Default for costs and reporting
What currencies do you buy in?Supplier payment currencies
What currencies do you sell in?Customer invoice currencies
Do you need separate books?Multi-currency P&L reporting

Common Currency Patterns

Pattern 1: Single Currency (Simple)

Business Unit: Adventure Tours
├── Default Currency: USD
├── Cost Currency: USD
└── Selling Currency: USD

Best for: Domestic operators, single-market focus

Pattern 2: Multi-Currency Selling

Business Unit: Global Adventures
├── Default Currency: USD
├── Cost Currency: USD
└── Selling Currencies: USD, EUR, GBP, AUD

Best for: Tour operators selling to international markets

Pattern 3: Full Multi-Currency

Business Unit: Regional Operations
├── Default Currency: USD
├── Cost Currencies: USD, EUR, THB, AUD
├── Selling Currencies: USD, EUR, GBP, AUD
└── Currency Books: USD Book, EUR Book

Best for: DMCs, global operators with regional procurement

Step 2: Create Currency Records

Navigate to Setup → Kaptio → Currencies.

Required Fields

FieldDescriptionExample
NameDisplay name”US Dollar”
ISO Code3-letter ISO code”USD”
SymbolCurrency symbol”$“
Decimal PlacesPrecision for amounts2
ActiveAvailable for use✓

Minimum Currency Set

For most implementations, create these currencies:

  • Home currency (your base)
  • USD (common supplier currency)
  • EUR (common supplier currency)
  • Customer currencies (based on your markets)

Step 3: Assign Currencies to Business Unit

  1. Navigate to your Business Unit record
  2. Set Default Currency (primary operating currency)
  3. Add Supported Currencies (currencies you can sell in)
  4. Save the record

Step 4: Configure Exchange Rates

Navigate to Setup → Kaptio → Exchange Rates.

Manual Rate Setup

For each currency pair you need:

FieldDescriptionExample
From CurrencySource currencyUSD
To CurrencyTarget currencyEUR
Buy RateRate for converting costs0.92
Sell RateRate for converting prices0.90
Effective DateWhen rate applies2026-01-01
Expiry DateWhen rate expires2026-12-31

Tip: Set Sell Rate slightly lower than Buy Rate to build in FX margin protection.

Rate Types Explained

RateUse CaseExample
Buy RateConverting supplier costsSupplier invoice in EUR → USD cost
Sell RateConverting customer pricesUSD price → EUR selling price
Hedge RateLocked rate for forward bookingsRate guaranteed at time of quote

Part 2: Tax Configuration

Understanding Tax in Kaptio

Tax configuration in Kaptio operates at multiple levels:

LevelConfigurationExample
Business UnitTax Handling MethodInclusive or Exclusive
Tax ProfileTax rates and rulesUK VAT Profile
Tax GroupService-level tax assignmentStandard Rate (20%)

Tax Handling Methods

The Business Unit Tax Handling setting determines how prices are displayed and calculated:

Inclusive Tax

  • Prices include tax - what you see is what you pay
  • Tax is backed out for reporting
  • Common in: B2C markets, retail travel
Displayed Price: $1,200
Tax (20%): $200 (included)
Net Price: $1,000

Exclusive Tax

  • Prices exclude tax - tax added at checkout
  • Tax is clearly itemized
  • Common in: B2B markets, wholesale
Tax Handling ModelsVSTax Inclusive$1,000Display Price$909Base+$91TaxCommon: UK, EU marketsTax Exclusive$1,000Base Price$1,000Base+$100TaxTotal: $1,100Common: US, B2B markets💡 Set Tax Handling on Business Unit. Cannot be changed after bookings exist.

Step 5: Configure Tax Handling on Business Unit

  1. Navigate to your Business Unit record
  2. Find the Tax Handling field
  3. Select the appropriate method:
    • Cost Inclusive - Sell Inclusive (all-inclusive model)
    • Cost Inclusive - Sell Exclusive (inclusive costs, exclusive selling)
    • Cost Exclusive - Sell Inclusive (exclusive costs, inclusive selling)
    • Cost Exclusive - Sell Exclusive (all-exclusive model)
  4. Save the record

Choosing the Right Method

If…Then Use…
Selling B2C in inclusive tax jurisdiction (UK, EU)Cost Inclusive - Sell Inclusive
Selling B2B with tax-exempt customersCost Inclusive - Sell Exclusive
Operating in VAT-free jurisdictionCost Exclusive - Sell Exclusive
Mixed model (some taxed, some not)Cost Exclusive - Sell Exclusive

Step 6: Create Tax Profiles

Tax Profiles define the tax rules for a Business Unit.

Navigate to Setup → Kaptio → Tax Profiles.

Required Fields

FieldDescriptionExample
NameProfile identifier”UK Standard”
Business UnitAssociated BU”Adventure Tours”
Default Tax RateStandard rate20%
ActiveAvailable for use✓

Step 7: Create Tax Groups

Tax Groups allow different tax rates for different service types.

Navigate to Setup → Kaptio → Tax Groups.

Common Tax Group Setup

Tax GroupRateServices
Standard Rate20%Accommodation, Transport
Reduced Rate5%Some services
Zero Rate0%Food, Exports
Exempt0%Insurance

Configuration Steps

  1. Create Tax Group record
  2. Set Name and Tax Rate
  3. Link to appropriate Tax Profile
  4. Assign to services during service setup

Tax Hierarchy

Tax is determined by this priority order:

1. Service-level Tax Group (highest priority)
   └── Overrides everything if set

2. Package-level Tax Group
   └── Applies to package items without service tax

3. Business Unit Default Tax
   └── Fallback when nothing else is set

Part 3: Validation

Currency Validation Checklist

  • All required currencies created
  • Business Unit has Default Currency set
  • Supported currencies assigned to Business Unit
  • Exchange rates exist for all currency pairs
  • Both Buy and Sell rates configured
  • Rates have valid effective dates

Tax Validation Checklist

  • Business Unit Tax Handling method set
  • Tax Profile created and linked to Business Unit
  • Tax Groups created for different service types
  • Default Tax Rate configured
  • Tax Profile marked Active

End-to-End Test

Create a test itinerary to verify:

  1. Currency Test

    • Create itinerary in default currency
    • Add service with cost in foreign currency
    • Verify cost converts correctly using Buy Rate
    • Change selling currency
    • Verify price converts using Sell Rate

  2. Tax Test

    • Create itinerary with taxable services
    • Verify tax calculates correctly
    • Check invoice shows tax as expected (included or itemized)
    • Test with zero-rated service
    • Verify tax total is correct

Part 4: Common Issues and Solutions

Currency Issues

Issue: Prices not converting

  • Check: Exchange rate exists for currency pair
  • Check: Rate is within effective dates
  • Check: Both Buy and Sell rates are set

Issue: Wrong conversion rate applied

  • Check: You’re looking at Buy vs Sell rate correctly
  • Check: Rate effective date matches booking date
  • Check: Most recent rate is being picked up

Issue: Rounding errors

  • Check: Currency decimal places setting (usually 2)
  • Check: Rounding rules in Kaptio Settings

Tax Issues

Issue: Tax not calculating

  • Check: Tax Profile linked to Business Unit
  • Check: Tax Profile is Active
  • Check: Service has Tax Group assigned

Issue: Wrong tax amount

  • Check: Tax Handling method on Business Unit
  • Check: Tax Group rate is correct
  • Check: Inclusive vs Exclusive expectation

Issue: Tax showing when it shouldn’t

  • Check: Zero-rated Tax Group exists
  • Check: Service assigned to correct Tax Group
  • Check: Customer tax exemption status
ObjectAPI NamePurpose
CurrencyKaptioTravel__Currency__cCurrency definitions
Exchange RateKaptioTravel__ExchangeRate__cConversion rates
Currency BookKaptioTravel__CurrencyBook__cMulti-currency books
Tax ProfileKaptioTravel__TaxProfile__cTax configuration
Tax GroupKaptioTravel__TaxGroup__cService-level tax rates

What’s Next

With currency and tax configured, proceed to:

  1. Initial User & Validation Guide - Create users and validate the complete foundation
  2. Service & Supplier Setup - Build your travel catalog

See Also

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