Salesforce provides foreign currency management. You define the currencies and their decimal places and conversion rate. You need to request explicitly that Salesforce enables the multi-currency feature for your organization. You can enable the Advanced Currency Management yourself, which allows to update the currency rates for a specific date range (minimum: one day). If you want to use dated exchange rates, they are restricted to opportunities, opportunity products, and opportunity reports.
You enter the rates in the format of 1 USD = 0.73 EUR (at the recent peak of the Euro it was 1 USD = 0.66 EUR) - assuming that your organization currency is USD. In the financial press, you often find the inverse rate quoted for the EUR in contrast to other currencies.
Assuming, you created the initial EUR rate with 0.66 (1/0.66=1.52) and updated the dated rate to the recent of 0.73 (1/0.73=1.36) and enter a receipt amount of EUR 100 you will see in the Time & Expense Receipt Amount field "EUR 100.00 (USD 151.29)" whereas in the Expense Amount field will show "135.76". The cause is that Salesforce always uses the (single/base) currency rate for display - the dated rates are only used in Opportunities. Consequently, best practice is to update the base currency rate on a regular bases to minimize questions.
Nevertheless, we always use the dated rate (if defined) for converting the foreign currency amounts. The following table shows the different amount fields
| Type | T&E Item | T&E Report | ||
|---|---|---|---|---|
| Currency Amount | Receipt Amount | (Foreign) currency amount | T&E Report Amount | Converted to Report Currency |
| Converted Amount | Expense Amount | Converted to organization currency | Expense Amount | Sum of the Item expense amounts |
You would use the Expense Amount fields in Workflow decisions as they are in the (known) organizational currency. In a single currency environment, you still have the amounts above, but the values, e.g., of the Receipt and Expense Amount would be the same.
When creating expense reports, you can decide in which currency you want to create the report. If the report is in the organization currency, you can add expense items of any receipt currency. If you create a foreign currency expense report, you can add only receipt items of the report currency.
You can also update the exchange rates on a report and currency basis. Example would be that you want to use the currency rate from your credit card. Last but not least, you can update the report item expense amount directly. Example here is that you want to enter the exact amount on your credit card statement. Note that in the credit card statement import, the amounts are imported as converted amounts, the original foreign currency receipt amounts are not available in the statement import. You can secure the ability to update currency exchange rates by profile, e.g. allow only managers to update them. You can also report of the actual conversion rate to detect abuse.
The reimbursement of expenses is in the currency of the expense report.
Multi-currency management is always a challenge and we make it as painless as possible in Salesforce.
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