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How to Use Currency Management In Salesforce

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Published by jetbi
31 July 2023
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Introduction

Managing accounting records and forecasting reports while considering conversion rates can be challenging for businesses operating across multiple countries. To overcome this hurdle, Salesforce.com offers a solution known as multicurrency. By configuring multiple currencies within your organization, users can view records and reports in their preferred personal currency. All currencies are seamlessly converted through automated conversion rates into their respective unique currencies.

The introduction of multicurrency streamlines the process of converting and calculating sales amounts into local currencies, eliminating the need for manual work.

Salesforce's multicurrency feature allows organizations to conduct sales transactions, record opportunities, and manage financial activities in different currencies. This functionality is particularly valuable for companies with an international customer base, as it streamlines their processes and ensures accurate financial reporting across different regions

To enable multicurrency in Salesforce, administrators can navigate to:
Setup > Company Settings and select "Enable Multiple Currencies".

Once enabled for a Salesforce account, it becomes a permanent feature and cannot be disabled later.

 

Benefits for business using Salesforce Currency Management

For accurate financial calculations, Salesforce employs exchange rates to convert values from the original currency to the target currency. The platform utilizes dated exchange rates to reflect historical currency values accurately. These rates play a crucial role in ensuring financial reports are precise, regardless of when a transaction occurred.

Utilizing advanced exchange rate management in business can have several benefits, particularly when it comes to deals and monetary operations.

Here are some ways advanced exchange rate functionality can be used for sales in business:

1. If your company has an online store, clients from different countries may be using different currencies to make transactions. The prices displayed can be instantly converted to the customer's native currency utilizing real-time or historical exchange rates thanks to advanced currency management. Because consumers can view prices in a familiar currency, this ensures that customers see accurate and consistent pricing, leading to a better user experience and increased sales.
 

2. It is very useful for the company sources products from vendors located in various countries. To facilitate swift foreign supplier payments, advanced currency management converts the payment amount from the company's base currency to the supplier's currency using the current exchange rate. This ensures timely payments and fosters strong relationships with suppliers.
 

3. Advanced currency management can also benefit real estate business: The company's marketing initiatives in the worldwide real estate industry are directed at prospective customers from various places. They may display property pricing in several currencies on their website and in their marketing materials thanks to advanced currency management, giving foreign customers a seamless and tailored experience.

Transactions are frequently carried out in several currencies when working with overseas clients, particularly when buying expensive real estate. By converting the purchase amount from the client's currency to the company's base currency at the current exchange rate, advanced currency management enables the business to process payments accurately. This minimizes the possibility of errors or financial losses brought on by currency changes and ensures that the real estate company receives the exact amount in its preferred currency


4 Tips for Effective Multicurrency Management in Salesforce

Activate the Advanced Currency Management (ACM) Feature: Start by enabling the powerful ACM feature in Salesforce to handle dated exchange rates efficiently. Head to Setup > Company Settings > Manage Currencies, and simply check the box for Advanced Currency Management. Click "Enable" to initiate this essential functionality.

Customize Periods to Your Organization's Needs: Personalize periods for exchange rates to match your organization's unique requirements. Whether it's daily, weekly, fortnightly, monthly, or any other interval, select the most fitting timeframes for your business operations.

Evaluate Parenthetical Currency Conversion (Optional): Salesforce also offers the Parenthetical Currency Conversion feature, which displays the user's currency within brackets on records. Assess its alignment with your organization's needs, and enable or disable it accordingly.

Remain Mindful of ACM Limitations: Keep in mind that Dated Exchange Rates apply solely to Opportunity records and related entities like Opportunity Products, Opportunity Product Schedules, Campaign Opportunity fields, and Opportunity Splits. Understanding ACM limitations is vital to avoiding unexpected behavior in other record types.

 

Summary

Multicurrency enables global organizations to 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. 

 

If you need an expert team to implement Salesforce with the Currency Management feature please contact us and we will be back within 1 business day.

 


Darya Daneika
Certified Salesforce Developer / Certified Salesforce Administrator
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