Salesforce Multi-currency

Introduction : International organizations can use multiple currencies in opportunities, forecasts, reports, quotes, and other currency fields. The administrator sets the “corporate currency,” which reflects the currency of the corporate headquarters. The administrator also maintains the list of active currencies and their conversion rates relative to the corporate currency. The active currencies represent the countries in which the organization does business. Only active currencies can be used in currency amount fields not inactive currencies.

Each user has a personal currency, which is used as the default currency in quotas, opportunities, quotes, and reports. Users can also create opportunities and enter amounts using other active currencies.

Key Terms

Corporate Currency
The currency in which your corporate headquarters reports revenue. Serves as the basis for all currency conversion rates.
Conversion Rates
The currency conversion rates between the corporate currency and the multiple currencies used by your organization. Your
organization’s administrator maintains these rates.
Personal Currency
A user’s default currency for quotas, certain forecasting versions, and reports. Must be one of your active currencies. If you use
Collaborative Forecasts, your quota amounts appear in your display currency.
Active Currency
A currency in which your organization does business. Only active currencies can be entered in opportunities, forecasts, and other
Inactive Currency
A currency that your organization no longer uses. You may have existing records that use inactive currencies, but you can’t enter
new amounts using inactive currencies.
Record Currency
The default currency for a record. Every record has a Currency field that specifies the currency type for amounts in that record

CurrencyType: This object stores the list of currencies used in the org when multi currency is enabled. If single currency is used in the org, then this object is not available.

DatedConversionRate: This object stores the dated exchange rates.

CurrencyIsoCode: This additional field is present in object which has current field and the org has multi-currency enabled. 

Enable Multi-Currency

 Go to Company profile -> Manage Currencies

5 – Add Currencies

Add as many currencies as your business need.

Now select the need Currency type (USD,PKR,INR,GBP etc) and set the conversion rate along with decimal places.

3 – Edit Rates – you can always change conversion rates as per your convenience.

4 – Change Corporate – As discussed there must be one currency set as corporate currency but you can always change your corporate currency.

There are two ways we can use multi-currency

2.) Parenthetical Multi-Currency Exchange Rates

It is simple but not much useful and not applicable to most of the business.

Enable if it is not already.

Consider you have USD as your corporate currency. And you have AUS and CAD as your other currencies.

A user having CAD as his personal currency when will create an opportunity with record currency USD.

This user will see amount field in this format

USD 1000 (CAD 1050)

Now suppose same opportunity is closed won and then some time later your admin change the conversion rate that will be reflect to all org for all currency field regardless the actual value it had before conversion rate.

So this old opportunity currency fields will display values as per latest conversion rate.

I know it is not that much useful.

1.) Advanced Dated Multi-Currency Dated Exchange Rates 

The exchange rates can be maintained based on date ranges. For Opportunity, the currency conversion rate will be calculated depending on opportunity ‘Close Date’. The time between one start date and the next start date is called the exchange rate date range.

Advanced currency management allows you to manage dated exchange rates within opportunities using Salesforce. Dated exchange rates allow you to map a conversion rate to a specific date range. For example, the exchange rate on January 1 was 1 USD to 1.39 AUD, but on February 1, it changed to 1 USD to 1.42 AUD. Your opportunities that closed between January 1 and February 1 use the first exchange rate (1 = 1.39), while opportunities that closed after February 1 used the second exchange rate (1 = 1.42).

Dated exchange rates are defined using a start date and a conversion rate. Each rate is in effect until either the end of time or the day before the next start date for that currency. The time between one start date and the next start date is called the exchange rate date range. These ranges can be as small as a day and as large as all time.

This dated exchange rates are used in Opportunities, Opportunity products and Opportunity Reports.

The object used to store this information is DatedConversionRate. You can run SOQL queries against this object to get the details

SOQL : SELECT IsoCode,ConversionRate,NextStartDate,StartDate FROM DatedConversionRate ORDER BY NextStartDate ASC

In Reports
Amounts in reports are shown in their original currencies, but can be displayed in any active currency. You can change the currency
used for report totals by selecting a currency from Show > Currencies. The default value is your personal currency. For any amount,
you can choose to display the Converted column—for example, Annual Revenue Converted—which shows amounts in the
currency you select.

Implications of Enabling Multiple Currencies: 

It is a permanent change in organizations. After enabled, you can’t disable it.

2. If your organization maintains two different currency records, switch them all to the same default currency before enablement.

3. All standard and custom object’s currency fields support multiple currency.

4. After enablement, the primary currency display as usual and the secondary currency amount shown in parentheses is user’s personal default currency.

5. After enablement, all currency fields display the ISO code of the currency before the amount. For example, $100 displays as USD 100

6. Conversion rate must be set and updated manually.

7. Must enable the currency conversion.

8. If you have only one currency in your multi-currency organization, you can set a preference to display currency symbols instead of ISO codes: Go to “User Interface” from Set up, and then select “Show currency symbols instead of ISO codes”Dated exchange rates are used for opportunities, opportunity products, opportunity product schedules, campaign opportunity fields, opportunity splits, and reports related to these objects and fields. Dated exchange rates are not used in forecasting, currency fields in other objects, or currency fields in other types of reports. Dated exchange rates are also not used when calculating formula fields with a formula return type of “Currency.”

9. Organizations with advanced currency management support roll-up summary fields between two advanced currency management objects. For example, roll-up summary fields are supported from an opportunity line item object to its opportunity object, because both are advanced currency management enabled. However, if you enable advanced currency management, you can’t create roll-up summary fields that calculate currency on the opportunity object rolling up to the account object. You also can’t filter on the opportunity currency field on the account object. All existing currency-related roll-up summary fields on the opportunity object that summarize objects that don’t support dated exchange rates are disabled and their values are no longer calculated. If your organization enables advanced currency management, delete any currency roll-up summary fields using opportunities and accounts or opportunities and custom objects.

10. Campaign opportunity fields use dated exchange rates when calculating the amount in the campaign currency. However, they don’t use dated exchange rates when converting those amounts to the user currency.

11. Cross-object formulas always use the static conversion rate for currency conversion.

12. If advanced currency management is enabled, you can’t bind Visualforce pages that use <apex:inputField> or <apex:outputField>  components to currency fields that support advanced currency management.

Some Useful Links

How to enable Salesforce Multi-currency, and what are its implications?

Salesforce Multiple-Currency – Managed Currency Vs Advanced Currency

Click to access salesforce_using_multiple_currencies.pdf

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