This article describes foreign currency conversion in Zuora.
Foreign Currency Conversion
In a global subscription economy, sales can occur in multiple currencies. Zuora allows you to convert foreign currencies into your home currency for financial reporting. See Currencies and Their 3-Letter Codes for a list of currencies supported by Zuora.
To calculate conversion rates in Zuora, you can use the exchange rates posted by the default exchange rate provider, Oanda, or import custom exchange rates through the Mass Updater.
If you use the default exchange rate provider, the rates are averaged for the 24-hour period ending at 22:00 UTC (Coordinated Universal Time) on the day before Oanda posts them. The bid rate is used.
Exchange Rate Date
Each transaction in Zuora has an Exchange Rate Date. If you are using Oanda, Zuora uses the exchange rates from the day before the Exchange Rate Date. For example, if the Exchange Rate Date of a transaction is January 8, Zuora uses the exchange rate provided by Oanda on January 7.
If Zuora does not successfully sync a rate from Oanda on a given date, the available rate on the most recent date is used.
For example, if the Exchange Rate Date is 2015-09-10:
- If the exchange rate is 1.3 on 2015-09-10, the rate on 2015-09-10 is used.
- If the exchange rate is not available on 2015-09-10, but 1.1 on 2015-09-09 and 1.2 on 2015-09-11, the rate on 2015-09-09 is used.
- If the exchange rate is not available on 2015-09-10 and not available on 2015-09-09, but 1.1 on 2015-09-08 and 1.2 on 2015-09-11, the rate on 2015-09-08 is used.
If no valid rate is available on the Exchange Rate Date that is later than or equal to your tenant's 'Today', the rate for that date is left unavailable.
To see how Zuora gets the Exchange Rate Date for each transaction type, refer to How Zuora Calculates the Values of Foreign Currency Conversion Fields.
If you upload custom exchange rates, you can configure the rate date using the Provider Exchange Rate Date Offset setting as described below in How to Enable Foreign Currency Conversion.
The following table describes the different types of currency in Zuora.
|Currency type ||Description |
The default currency set for your product rate plans. See Customize Currencies for more information.
The currency you use to create financial reports. You only have one home currency.
The currency used by the customer. See Billing and Payment Information.
Configure Foreign Currency Conversion
To enable foreign currency conversion, you must configure your home currency in Zuora and indicate whether to use the default exchange rate provider or upload custom exchange rates.
- Navigate to Z-Finance Settings > Manage Currency Conversion.
- Complete the following fields:
- Home Currency: Click and select your home currency.
Once you have set your home currency, you cannot change it.
- Exchange Rate Provider: Select Oanda, the default exchange rate provider, or select Use a custom exchange provider if you want to import and use your own exchange rates. You must upload custom exchange rates through the Mass Updater. See Mass Updater and import custom exchange rates for more information.
If you use a custom exchange rate provider, you must upload exchange rates for all transactions in an accounting period. Otherwise, you will receive an error when running a trial balance. Note that some transactions in a given accounting period might have transaction dates that are before that period.
- Exchange Rate Date:
- Daily: Select to use the daily exchange rate.
- Provider Exchange Rate Date Offset: If you select Use a custom exchange rate provider in the Exchange Rate Provider field and if you select Daily exchange rate, you can specify a date offset.
Sometimes, exchange rates from your vendor are not available on the same day due to processing delay.
Specify the exchange rate date offset. For example, if you set the offset to 2, the exchange rate from 2 days prior will be used when converting currencies.
The default value is 0 days.
- Day of the Month: Select to use the monthly exchange rate.
- Click and select the day of month to get the monthly exchange rate.
- Use inverse rate: Select yes to use the inverse rates when converting currency amounts. The foreign currency amount is multiplied by the inverse rate to calculate the home currency amount. With an non-inverse rate, the foreign currency amount is divided by the rate to calculate the home currency amount. Typically, inverse rates are used for currency conversions.
- Rounding Mode: Select whether to round half up or down when converting currency amounts. For example, if a foreign currency amount is being converted into USD:
- If you select Down:
- 10.001 USD is rounded to 10.00 USD
- 10.005 USD is rounded to 10.00 USD
- 10.009 USD is rounded to 10.00 USD
- −10.005 USD is rounded to −10.00 USD
- If you select Half Up:
- 10.001 USD is rounded to 10.00 USD
- 10.005 USD is rounded to 10.01 USD
- 10.009 USD is rounded to 10.01 USD
- −10.005 USD is rounded to −10.01 USD
- Automatically include additional Currency Conversion information in data source exports: Select this check box if you want to access foreign currency conversion data through data source exports.
- Click save. Foreign currency conversion is now enabled.
How to View Data for Foreign Currency Conversion
You can access foreign currency conversion data through: