Manage Currency Conversion
Learning Objectives
After completing this unit, you’ll be able to:
- Explain how to identify and set currency fields in Spiff Designer.
- Describe how to convert currency fields to another currency.
Introduction
If your company operates globally, you’re not just closing deals in different currencies, you’re also paying commissions to sellers around the world in their local currencies. Setting your Spiff up for success takes a two-pronged approach: Ensure accurate currency conversion data is available, and use Spiff to handle conversions effectively. The last two units covered the first part. Now, your Spiff is calibrated and ready to process conversions. But how do you put it to work? Keep reading to find out how.
Manage Currency and Currency Conversion
In datasheets or worksheets, clicking a field or calculation opens the Calculated Field pane. Here, you find two important currency-related settings: Convert to Currency and Convert to Another Currency. By using these two settings, you ensure that Spiff handles currency conversions smoothly. So, whether you manage commissions, sales, or revenue tracking, your numbers stay consistent and reliable.
Convert to Currency
This setting tells Spiff that a field is a currency. Before converting to another currency, set the variable’s data type to currency. If the field is already a currency, Spiff shows Already Currency. If not, you see several options when you turn on Convert to Currency.
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Rep Preferred Currency (1): Use the currency set in the user’s profile.
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Fixed Currency (2): Choose a specific currency from a predefined list. The first option is always your corporate currency, followed by other currencies listed alphabetically.
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Currency from Field (3): Select a currency code from an existing calculated field. Connector fields are not available.
Select the appropriate option to ensure that Spiff recognizes and processes your currency data correctly before applying any conversions.
Convert to Another Currency
If the field is already a currency or you turn on Convert to Currency, selecting Convert to Another Currency presents several options.
Destination Currency
This option presents the same three options as Convert to Currency, but you can use this option to take the original currency and convert it to another.
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Rep Preferred Currency: Use this option when each rep has their own currency set in their user profile, while the default currency remains a single currency type. Before using this option, make sure that all reps have a Preferred Currency set in their profile, even if it matches the Corporate Currency.
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Fixed Currency: Use this option to convert any currency in the field to a single, predefined currency.
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Currency from Field: Use this option to select a currency code from an existing field. If the selected field does not contain currency codes, you receive an error.
Conversion Date
After you select one of the three options, choose a Conversion Date. Currency exchange rates, similar to stock prices, change every day, so there isn’t one fixed rate. Each day, or even hour, has a different rate, and you inform Spiff which rate to apply. The conversion date you choose determines the rate that was in effect at that time.
Common choices for the conversion date include CloseDate or statement_period.end_date. Use CloseDate when converting annual recurring revenue (ARR) or deal amounts, as it applies the conversion rate from when the deal closes. If you’re converting a rule to the rep’s preferred currency, use the exchange rate from the statement period’s start or end date. There are two options available for conversion dates.
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Calendar Date: Use this option to choose the starting date for the currency conversion.
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Date from Field: Use this option to choose a particular date field that defines the start date for the currency conversion.
After completing both selections, the output of your rule or calculation appears in the destination currency.
When working with different currencies, be aware of currency mismatch errors. These errors often occur when one rule uses one currency, such as USD, while another is converted to the rep's preferred currency, such as EUR. To avoid these errors, ensure that all rules are calculated in the same currency.
Conclusion
Setting up and managing currency conversions in Spiff ensures accurate financial calculations across different currencies. By uploading conversion rate tables and using Spiff Designer, you gain control over how currencies are converted and managed within your rules. With these tools, you can simplify currency management, ensure consistency, and avoid errors, making it easier to manage global transactions and maintain accuracy in your calculations.