Overview of multi-currency contracts
Explore how multi-currency contracts allow transactions in various currencies, system configurations for currency allocations, and examples of currency determination in Zuora Revenue.
Multi-currency contracts involve more than one transaction currency in a revenue contract, thus allowing your customers to pay in their local cash.
System configuration
Depending on the system-level value of the MULTI_CURR_FV_REPORT_LEVEL profile, you can use the functional or reporting currency for allocations or calculations in multi-currency revenue contracts. You can set the profile value to one of the following:
- Lowest Common Currency
- Reporting Currency
When you set the MULTI_CURR_FV_REPORT_LEVEL profile to the Lowest Common Currency, all the lines within the revenue contract will have the same functional currency, and Zuora Revenue will execute calculations in the functional currency. In all other circumstances, Zuora Revenue will use the reporting currency specified by the REPORTING_CURRENCY profile to do the calculations.
Multi-currency contract in Workbench
You can view the multi-currency contracts in M following the revenue contract number in the contract header, as shown in the following graphic.
The Overview tab of the Revenue Contract Detail page also indicates the allocation currency on the right pane. In the above graphic, allocations of contract RC10725 happen in the Reporting Currency (USD). On the left pane, values are displayed only in the reporting currency.
If the allocation happens in the transaction currency, values are displayed in the transaction currency, functional currency, and reporting currency. If the allocation happens in the functional currency, values are displayed in the functional and reporting currencies.
Examples of currency determination
The underlying examples help you understand how the allocation currency is determined for the multi-currency contracts eligible for allocations in Zuora Revenue. The same logic also applies to multi-currency contracts that are not eligible for allocation.
The column headers are abbreviated in the example tables as follows:
- T.Curr: Transaction currency
- F.Curr: Functional currency, which is the book currency.
- G.Curr: Reporting currency.
- F.Ex.Rate: Functional exchange rate is the exchange rate from the transaction currency to the functional currency.
-
G.Ex.Rate:
Reporting exchange rate, which is the exchange rate from the functional currency to the reporting currency.
Read these examples provided here to further understand currency determination.
Related articles
An example is provided to explain how the carve amount is calculated after the allocation currency is determined for a multi-currency contract. See Derivation of carve amount.
To understand how the linking and delinking operations can impact the allocation currency, see the examples provided in Impact of linking and delinking.