If you are doing your business in multiple countries, it is difficult to maintain the accounting records and forecast reports that take conversion rates into account. To solve this problem, Salesforce.com provides a feature called multicurrency. Once you setup the multiple currencies in your organization, each user can view all records and reports in their preferred personal currency. Based on the conversion rates, all currencies convert into their personal currency.

Multicurrency eliminates the manual work of converting or calculating the sales amount into local currency.

This feature is not available in Salesforce by default. We need to raise a case to Salesforce for enabling multicurrency. Once the multicurrency is enabled in the SF account, we cannot disable it.

Key terms used in the Multicurrency

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Managing Multicurrency

1. Creating a new Currency
The following are the steps to create a new currency in your organization.
• Select Setup -> Company Profile -> Manage Currencies.
• Click -> New
• Select your currency in the Currency drop down menu.
• Enter your currency conversion rate based on your corporate currency in the Conversion Rate box and select the number of decimal places to show when displaying currency amounts.

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• After hitting the save button, you can see the created currency in Active Currency section.

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You can change conversion rates any time and also you have an option to change your corporate currency based on your business needs.

2. Setting up Corporate Currency
Please follow the steps below to set up corporate currency:
• Setup -> Company Profile -> Manage Currencies.
• Click ->Change Corporate
• Select your corporate currency from “Currency” drop-down list.
• Click “Save.”
Now, the default currency for the organization is now changed.

3. Setting up the Personal Currency
Please follow these steps to change the personal currency of your organization.
• Select Setup->Settings->Personal-> Advanced User Details.
• Edit
• Select a currency from drop Currency drop-down list
• Save the record.

Implications of Enabling Multiple Currencies

1. Multiple currencies at record level
The following objects support the multicurrency in Salesforce:
Opportunities, Opportunity Products, Opportunity Product Schedules, Campaign Opportunities, and reports related to these objects.

Once you have enabled the multicurrency, the multiple currency compatible fields will be added to the page layouts of these objects, and these fields are available only when creating a new record or editing an existing record. The selected currency is used for the primary amount field.

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If you want to see your local currency in the same record, you have to enable the Parenthetical Currency Conversion in manage currencies, as below.

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Once the parenthetical currency conversion is enabled, the secondary currency will display in parentheses. The primary currency may be a default corporate currency or a record level currency. The secondary currency is user’s personal currency, calculated based on the conversion rate settings defined for user’s organization.

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2. Multicurrency in Forecasting
Forecasting predicts the expected revenue an organization is going to generate over a period of time. For organizations that use multiple currency, any forecast amount is displayed in user’s personal currency, by default. When managers view their employees’ forecast, the forecast amounts are automatically converted to managers’ own currency.

The Amount is displayed based on the corporate currency

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3. Multicurrency in Salesforce Quota
A quota is the sales target assigned to a user on a monthly or quarterly basis.
Normally, Quota will be displayed in the user’s personal currency. After you have enabled this multicurrency, you can change your quota currency from your organization’s active currencies. While changing the currency for quota, the forecasting currency also will be changed based on the currency of quota.

4. Currency Format
When multicurrency is enabled, CurrencyISOCode is automatically defined for all objects that have currency fields. So, the amount fields can be displayed with the ISO code followed by a space and the actual amount. For example, $10.50 is displayed as USD 10.50, if the CurrencyISOCode is USD.

Summary
Multicurrency enables global organizations maintain their Opportunities ,Forecast, and Reports in multiple currencies, eliminating the need for any manual currency conversions. Most importantly, Salesforce is the only CRM solution that supports efficient multiple currency management.