Context
PFIs (Payroll Funding Invoices) are issued as estimated prefunding invoices to cover the upcoming payroll cycle and are not considered final. Once the payroll cycle is finalized—typically the following month—a settlement invoice (SI) is issued to reflect the actual amounts processed. For talents who receive salaries in a currency different from the invoicing currency, an FX rate is applied. However, the FX rate used in the PFI may sometimes slightly differ from the one applied in the final SI, as the rates are based on the respective dates of processing.
Additionally, when talents submit expense reimbursement requests in a currency that differs from both their local currency and the invoicing currency, the amount shown on the PFI will be an estimate only. The final processed reimbursement amount—based on the actual FX rate at the time of processing—will be reflected in the settlement invoice. This is to ensure that the final invoice accurately reflects the true cost of the reimbursement after currency conversion.
Talk Track
VERSION 1: SHORT (Quick Call Response)
Pillars: Effortless, Customer & Talent Experience, Transparency
The FX rate used in the Payroll Funding Invoice (PFI) is only an estimate to help you pre fund payroll. The Settlement Invoice (SI) uses the actual FX rate from the date payroll and expenses are processed, which is why the amounts can differ slightly. The same applies to expenses in other currencies. The PFI shows an estimate, while the SI reflects the true reimbursed cost after conversion.
VERSION 2: MEDIUM (Standard Conversation)
Pillars: Effortless, Customer & Talent Experience, Transparency
The Payroll Funding Invoice (PFI) and Settlement Invoice (SI) use different FX rates because they serve different purposes. The PFI is an estimate that allows you to pre-fund payroll on time, using the best available predictive data. The Settlement Invoice is based on the actual payroll amounts and the FX rate used at the time of processing. This means the SI always reflects the accurate cost.
Expenses follow the same principle. If a talent submits an expense in a currency different from their payroll currency or your invoicing currency, the PFI shows an estimated value. In the SI, we use the final FX rate to convert the reimbursed amount into your invoicing currency, which ensures complete accuracy.
VERSION 3: LONG (Full Narrative)
Pillars: Effortless, Customer & Talent Experience, Transparency
I completely understand why you would want clarity on FX differences between the Payroll Funding Invoice (PFI) and the Settlement Invoice (SI). The key point is that the two documents serve different purposes, which is why the FX rates used are not always the same.
The PFI is simply an estimate. It uses indicative FX rates to help you pre-fund the upcoming payroll cycle so that we can pay your talent accurately and on time. It is designed for speed, predictability and ease of planning, which is why the FX values are based on the rates available at the time of generating the estimate.
The Settlement Invoice, on the other hand, is produced only after payroll has actually been processed. At that point, we apply the verified FX rates that were used at the time the salary or expense was paid. This ensures that the SI reflects the true cost, not an estimate, and gives you full transparency into how each item was calculated.
Expenses follow a similar process. If a talent submits an expense in a different currency, it is first reimbursed in their local payroll currency. When we generate the Settlement Invoice, we convert that final reimbursed amount into your invoicing currency using the FX rate from the last working day before the SI date. This method avoids discrepancies and ensures accuracy.
So while the PFI gives you a clear estimate for prefunding, the SI provides the final and precise values. It keeps the process effortless for you, ensures a smooth experience for your talent and allows every payroll cycle to remain completely transparent.
FAQ
Will the Settlement Invoice use the FX rate from the Payroll Funding Invoice?
No, the Payroll Funding Invoice (PFI) and Settlement Invoice (SI) are separate processes. The PFI is an estimate, generated with available predictive data to ensure you can pre‑fund payroll on time. The SI reflects the actual verified payroll data once payroll (including expense processing) is complete.
How are expenses in multiple currencies handled in the Settlement Invoice?
Expenses are always reimbursed in the employee’s local payroll currency, regardless of the currency in which the expense was originally incurred. For example, if an expense is submitted in CHF and the employee’s local payroll currency is SEK, the amount is first converted from CHF to SEK for reimbursement.
When the Settlement Invoice (SI) is issued, the actual reimbursed amount in SEK is then converted into your invoicing currency (EUR) using the exchange rate from the last working day before the invoice date.
While the Payroll Funding Invoice (PFI) shows an estimated cost, the Settlement Invoice always reflects the final reimbursed amount and applies the finalized FX methodology, converting from the talent’s local payroll currency to the invoicing currency.