Currency types

The different types of currency in Zuora

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


Currency type	Description
Default currency	The default currency set for your product rate plans.
Home currency	The home currency, also known as the functional currency, is the currency of the primary economic environment or organization in which an entity operates. It's the currency in which the entity primarily generates and spends cash. You can have only one home currency for each organization.
Transaction currency	The currency used by the customer account and in which the transaction originates.
Reporting currency	The currency in which a company prepares its financial statements. This currency is often used for roll-up reporting and to present the financial results to stakeholders, including investors, regulators, and tax authorities. For currency conversion to reporting currency, transaction amounts will first be converted from transaction currency to home currency and then from home currency to reporting currency. For single-organization tenants, the reporting currency can be configured at the Tenant level. For Multi-Organization tenants, it can be configured at the Parent/HQ organization level, and the child organizations will automatically inherit it.

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.

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