Manage currency conversion

Exchange rate

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 1 or 2 days before the Exchange Rate Date depending on your time zone. If your time zone can catch the window when Oanda updates their rates, the offset will be 1 day; otherwise, the offset will be 2 days.

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.

Currency types

​The following table describes the different types of currency in Zuora.

For example,

Consider a multinational corporation based in the United States. The currency types used in its entire business are explained below:

• The transaction currency for this organization can be multiple, depending on the currencies in which the organization conducts its sale of products and services.
• The home currency of its subsidiary in Japan is the Japanese Yen (JPY).
• The home currency of its subsidiary in Germany is the Euro (EUR).
• The reporting currency for the entire corporation is the US Dollar (USD), which means all financial statements from its global subsidiaries will be converted and consolidated into USD for reporting to shareholders and regulatory bodies.

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.

1. Click your username at the top right and navigate to Finance Settings > Manage Currency Conversion.

2. Complete the following fields:
   • Home Currency: Click and select your home currency.
     • Once you have set your home currency, you cannot change it.
     • If you have enabled the Multi-Org feature to configure the root or child organization, then the Home Currency field will be disabled.
   • Reporting Currency: Click and select your reporting currency. To enable the Reporting Currency option, submit a request at Zuora Global Support.
     • You must first select the home currency to select the reporting currency. Once you have set your reporting currency, you cannot change it.
     • If you have enabled the Multi-Org feature to configure the root or child organization, then the Reporting Currency field will be disabled.
   • 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.
     To enable the Use a custom exchange provider option, submit a request at Zuora Global Support.
   • Exchange Rate Set: Select an exchange rate set. To enable the Exchange Rate Set option, submit a request at Zuora Global Support. A Rate Set in Zuora is a configuration that allows multi-org users to define and manage foreign exchange rates for a particular organization. Multiple organizations can share a rate set.
     • An exchange rate set can be selected when the exchange rate provider is ‘Custom’.
     • You can add a new rate set using the Add A New Exchange Rate Set option. You can import the custom exchange rate through the mass updater feature. The mass updater upload file should also include the rate set name.
   • 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
   • Multi-Org: Click and select a root or child organization to configure any of the following:
     • ​​​​​This feature is in Limited Availability. If you want to have access to the feature, submit a request at Zuora Global Support. 
     • You will not be able to update Home and Reporting Currency after you have enabled this feature. Based on the organization that you select the Home and Reporting Currency fields are populated automatically.
     • Under Multi-Org, you cannot configure the child organizations unless you have configured the Home and Reporting Currency for the root organization. For more information on the organization hierarchy, see Management of Entity and Entity Hierarchy.
     • Exchange Rate Provider
     • Exchange Rate Date
     • Use inverse rate
     • Rounding Mode

• 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.

2. Click save. Foreign currency conversion is now enabled.

View data for foreign currency conversion

You can access foreign currency conversion data through:

• Summary journal entries; see Foreign Currency Conversion for Summary Journal Entries.
• Data source exports; see Foreign Currency Conversion for Data Source Exports.
• Data Query; see Foreign currency conversion for Data Query.
• Accounting period Balances tab; see Foreign Currency Gains and Losses.
• Revenue detail exports; see Accounting Period Revenue Detail.
• REST API (only for custom rates); see Get Custom Foreign Currency Exchange Rates.
• Reporting(if "Reporting Currency FX Data" feature is enabled); see Fx Data in data source exports.