By default, Salesforce organizations use a single currency. Once we set the currency locale in the company settings, all currency values on records display in that currency.
Fun Begins !!!
A company named ‘Badmaa$h Company’ started using Salesforce to sell its products like gloves, shoes, socks etc.
Initially, company was only dealing with India based clients. As company did business only in the Indian Currency, the transactions were reported solely in Rupees. Therefore, Corporate Currency was set to Indian Rupees.
Scenario 1
As the business started growing, Shahid Kapoor, the CEO of a ‘Badmaa$h Company’ started selling a lot of products in US. When he closed deal with US partners, amount had to be in US dollars.
Problem: Now Shahid got confused
Solution : Enable Multi-currency
Go to setup-> Manage Currencies
Create US Currency and enter exchange rate
Setup 
Output
Amount for Gloves in USD is $1000 and it is also mentioned in Rupees (Rs 75000). Due to the Conversion Rate setup in the Manage Currencies
Scenario 2:
Gradually as business kept expanding in US, the main headquarter for ‘Badmaa$h company’ changed from India to US.
Problem: Shahid had a doubt
Solution: Got to Setup-> Manage Currency -> Click on Change Corporate
Change Corporate Currency from Rupees to USD
See the change
Scenario 3:
‘Badmaa$h Company’ got a deal on gloves worth $1000 in Aug 2020 and it was worth Rs70000 in Indian currency. Again, Badmaa$h Company closed a deal worth $1000 in Dec 2020 and this time exchange rate was $1 = Rs74, so it was worth Rs 74000.
Problem: Shahid started thinking
Solution: Advanced Currency Management
Setup-> Manage Currency -> Enable Advance Currency Management
Click on ‘Manage Dated Exchange Rate’
Click on Continue
Exchange Rate setup, starting from Aug 1st 2020 is $1= Rs70
On Opportunity, closing Date determines which exchange rate will be used.
If the close date is after Aug 1st. Exchange rate will be calculated as USD 1000 = Rs 70,000.
Exchange Rate starting from Dec 1st 2020 is $1= Rs74
If the close date is after Dec 1st2020. Exchange rate will be calculated as USD 1000 = Rs 74,000
Additional Knowledge (Optional): AppExchange Apps Regarding Currency Management
Shahid observed that Salesforce lets him manage currencies so that he can see the “converted amount” for the opportunity in any currency he wants. However, he needed to update the currencies manually. This sometimes led to wrong exchange rates.
Problem: Shahid started evaluating
Solution: There are many apps through which these rates can be fed directly from multiple data sources into Salesforce to reflect the current exchange rate.
Tip of the Day
Don’t rush into mugging up the concepts. Make learning fun.
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