Multi-Currency Feature Overview
Overview For orders transacted in foreign currency, RevRec will translate the revenue recognition related metrics (i.e. deferred revenue, revenue etc) to the home currency amount based on foreign exchange rate as of the transaction date (contract date or invoice date). All reports and accounting journal entries related to revenue, e.g. unearned revenue roll-forward, journal entry report, will be reported in the home currency. Users can still track the orders, invoices in the transactionFew readersEnabling and Using Multi-Currency
Enabling and Using Multi-Currency Feature Leveraging multi-currency requires just a few steps; Configure: The first step is configuring your home/reporting currency. A single tenant will have a single home/reporting currency for revenue recognition purposes. If you have multiple subsidiaries with different home currencies, you would need to set up a separate tenant for each subsidiary. Provide Currency Information with your data: All existing transaction input methods work the samFew readersAccounting Rules for Multi-Currency
Translation of Foreign Currency to Home Currency RevRec translates foreign transactions currency into home currency for revenue recognition, based on the foreign exchange rate at the time of the transaction. For transactions that require the establishment of deferred revenue and ratable revenue recognition, we recognizes the revenue over the contract term based on foreign exchange rate as of the contract date. For example, if a customer purchases an annual subscription and is invoiced upfroFew readersMulti-Currency Examples
Multi-currency Example Transactions The following examples illustrate a few multi-currency transactions and what type of entries are created for each. Month 1 On 12/15/2020, an entity enters into a foreign currency subscription contract with a customer for 3 months starting from 1/1/2021. The customer is billed via an invoice on 12/15 for the entire contract value of EUR 300 (EUR 100/month) whFew readers