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Salesforce Multiple-Currency – Managed Currency Vs Advanced Currency


By: Venkata

Multi currency in salesforce

As many businesses need to handle their sales and marketing in multiple currencies (like USD, EUR, and etc), Salesforce allows administrators set up and manage multiple currencies and their exchange rates efficiently. We need to contact Salesforce to enable multiple currencies.

I. Multiple Currency: 

After enabling the multi – currency feature in Salesforce, the administrator can set the corporate currency that reflects the currency of the corporate headquarters. The administrator also maintains the lists of active currencies and conversion rate relate to the corporate currency. When an administrator changes an existing conversion rate, all currency amounts are immediately updated with the new rate across the entire organization.

Example: 

The multiple-currency records.

Organizations can use multiple currencies for Opportunities, Forecasts, Quotes, reports, and standard and custom objects currency fields data. Each user maintains a personal currency i.e. used as default currency in currency fields. Users can also choose other active currencies and enter an amount in currency fields while creating a record.

Example: 

Account object

Account Currency = USD – U.S. Dollar

Annual Revenue = USD 12121

If the current user’s personal currency is different from the currency of the record, the converted currency value is displayed in parentheses (calculated by conversion rate).

Example: 

// USD 12121 * conversion rate 0.909 = EUR 11017.989

The reports will show two columns such as original currency column and converted currency column.

Ex: Annual Revenue

multi currency salesforce

Implications of Enabling Multiple Currencies: 

1. 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, the currency symbol will be displayed before the amount of the currency fields.

6. Conversion rate must be set and updated manually.

7. Must enable the parenthetical currency conversion.

multi currency salesforce

8. Products can be priced in different currencies.

9. Once the currencies are added, they can’t be deleted, but can deactivate it.

II. Managed Currency:

The Administrator maintains the list of different active currencies with conversion rates. Then, the administrator can set one default corporate currency.

Example: 

multi currency in salesforce

The original currency amount and converted currency amount inside parentheses is displayed for all the standard and custom object currency fields records.

Example: 

While creating a Product, you can specify the price amount in two different currencies for both standard price book entries and custom price book entries. The currency amount is properly converted and maintained manually.

Example:

multi currency in salesforce

multi currency salesforce

Use Case: 

The user is reviewing a EUR currency record, but the user’s default currency is USD.

// Calculate the USD conversion amount, EUR amount / EUR conversion rate = USD amount

Account Record: 

Opportunity Record: 

Use Case: 

The user is reviewing the USD currency record, but the user’s default currency is EUR.

// Calculate a EUR conversion amount, USD amount * EUR conversion rate = EUR amount

Account Record: 

Opportunity Record: 

III. Advanced Currency Management: 

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.

Example: 

February 28 and before (1 USD = 0.909 EUR this is a previous (old) range). If the ‘Close Date’ does not match the new exchange date rates, the previous conversion rate will be calculated.

multi currency in salesforce

March 1 and after (1 USD = 0.9 EUR this is a new dated range).

multi currency salesforce

Use Case: 

If the opportunity ‘Close Date’ is matched by new dated exchange rate, all the currency fields of new conversion rate are calculated within in Opportunities and Opportunity related object records.

multi currency salesforce

Use Case: 

If the opportunity ‘Close Date’ does not match by new dated exchange rate, all the currency fields of managed (old) conversion rate (Existing exchange rate will become the first set of date exchange rate) are calculated.

multi currency in salesforce

Considerations / Limitations: 

1. Only applicable for opportunities, opportunity products, opportunity product schedules, campaign opportunity fields, opportunity splits, and reports to these objects and fields.

2.   Not applicable for forecasting, currency fields in other objects, or other types of reports.

3.  The currency roll-up summary fields support advanced currency management objects such as opportunities and opportunity line items.

4. Can’t create currency roll-up summary fields using opportunities and account or opportunities and custom objects.

5.    Cross object formula always uses static conversion rate i.e. Managed conversion rate.

6. The currency field values cannot be displayed using <apex:inputField> or <apex:outputField>.

Conclusion: 

Salesforce multi-currency features enable businesses to maintain the amounts in multiple currencies without any manual efforts.

Reference Links: 

  • https://help.salesforce.com/articleView?id=admin_currency.htm&type=0
  • https://help.salesforce.com/articleView?id=admin_enable_multicurrency_implications.htm&language=en_US&type=0
  • https://help.salesforce.com/articleView?id=administration_about_advanced_currency_management.htm&language=en_US&type=0