Add Currency Conversion Rates to Reports
Learning Objectives
After completing this unit, you’ll be able to:
- Describe how to create a calculation that displays currency conversion rates in reports.
- Explain the importance of accurate exchange rates in maintaining the integrity of commission calculations and reports.
Introduction
Salesforce Spiff is your go-to tool for managing commissions effectively, but its success depends on how well your systems and processes align with your company’s compensation strategy. To get the most out of Spiff, you need clean data, seamless integrations with other systems, and error-free, scalable rules.
Focusing on currency management is the key. If your company has businesses and teams across the globe, and deals come in from everywhere, the company surely juggles different currencies. For example, one currency for operations, another for seller payouts, and yet another for deal origins. Without a solid system in place, this complexity can complicate commission calculations and quotas.
The good news? Salesforce Spiff has your back. It supports and customizes currency management to suit your unique needs. This module walks you through setting it up effectively, so you can take full advantage of Spiff’s capabilities for smooth currency management. So, dive in!
Show Currency Conversion Rates in Reports
Imagine your team is reviewing a report showing revenue in multiple currencies. A deal closed in euros is great, but when you convert it to your company’s currency, the numbers don’t quite add up. Without knowing the exact conversion rate used, it’s nearly impossible to reconcile the numbers. That’s why creating a calculation to display the conversion rate—typically from your company currency to the destination currency—is so important. You can then include this calculation in reporting fields or make it visible in rep statements. This approach ensures transparency and accuracy across all financial reports.
Setting this up is a straightforward three-step process.
Create a Calculation that Returns Conversion Rates
The idea to create a calculation that returns conversion rates is simple: You replicate the calculation you usually use to convert deal amounts. For example, let’s say you’re converting the new Annual Recurring Revenue, NewARRFirstYear, from the deal’s currency, found in the CurrencyIsoCode field, to your company’s standard currency. For the conversion, you’re using the exchange rate that’s effective on the deal’s close date. This is how the formula looks like.
You can customize all the inputs. The destination currency is usually CompanyCurrency, which is set in Company Settings, but you can convert to any currency by hard-coding its ISO code, such as GBP or EUR, in the third parameter. Instead of using CloseDate, you can also use the start or end date of the statement period.
To get the exchange rate, reverse the source and destination currencies. Enter a value of 1 and convert it from the CompanyCurrency back to the deal currency. This gives you this exchange rate.
You apply this calculation as a calculated field, not just a summary. After setting up this calculation, you can add it as a column to datasets for any payout rules that calculate commissions for deals. The conversion rates, such as GBP or EUR, appear on the respective rows.
Include the Calculation in a Report or Statement
To make a field appear in a report or statement, include it in the payout rule logic. One way to achieve this is by creating reporting fields. You add a field to your calculation, give it a name, such as RateToUSD, and then recalculate the statements to ensure this data gets captured in the reporting database.
Add the Field to the Statement or Report
Now, search for your calculation, such as RateToUSD, when editing statement fields or creating custom reports.
After saving your changes, check if the rate appears as expected. Just make sure to set the field format to Number in Spiff Designer.
Including the conversion rate as a calculated field simplifies currency management and adds much-needed transparency. When added to reporting or visible fields, it ensures that the data is accessible on rep statements and reports, giving your team clarity and confidence in the numbers.
In this unit, you learned how to create a calculation that returns conversion rates, include this calculation in a report or statement, and add the field to the statement or report to ensure transparency and accuracy in your financial reports. Keep in mind that the formula relies on accurate, up-to-date exchange rates to function properly. Exchange rates fluctuate daily, so to make sure that calculations stay accurate, either sync these rates from a CRM such as Salesforce or upload the rates manually using our currency rate template. In the next unit, you learn exactly how to do that.