Salesforce: Dated Exchange Rates versus Conversion Rate

Last month, we discussed on How to edit Dated Exchange Rates, today we'll share more on Dated Exchange Rates.

Remember, dated exchange rates are not currently used in:
- forecasting
- currency fields in other objects
- currency fields in other types of reports

Dated exchange rates are used for:
- opportunities
- opportunity products
- opportunity product schedules
- campaign opportunity fields
- opportunity splits, and reports related to these objects and fields.

See this reference and vote this in IdeaExchange for Multi-Currency support for All Currency Fields .

Advanced currency management allows you to manage dated exchange rates within opportunities using Salesforce. Dated exchange rates allow you to map a conversion rate to a specific date range. For example, the exchange rate on January 1 was 1 USD to 1.39 AUD, but on February 1, it changed to 1 USD to 1.42 AUD. Your opportunities that closed between January 1 and February 1 use the first exchange rate (1 = 1.39), while opportunities that closed after February 1 used the second exchange rate (1 = 1.42).

Dated exchange rates are defined using a start date and a conversion rate. Each rate is in effect until either the end of time or the day before the next start date for that currency. The time between on start date and the next start date is called the exchange rate date range. These ranges can be as small as a day and as large as all of time.

Today we get a real scenario when dated exchange rates is not align with conversion rate.

This is screenshot from Opportunity report:

and this from Forecast report:

From screenshot above, opportunity report show USD 48.04, while from forecast report USD 48.02, this is not much different, but when the numbers getting bigger, the difference will be bigger.

Let us analyse:
This is screenshot from dated exchange rate

This is screenshot from conversion rate

Let's calculate this using Ms Excel

So, this is clearly show that Conversion Rate is used in forecast, even you already used Dated Exchange Rate. It is best to keep Conversion Rate in sync with Dated Exchange Rate.


Advanced Currency Management Considerations:

• Dated exchange rates are used for opportunities, opportunity products, opportunity product schedules, campaign opportunity fields, opportunity splits, and reports related to these objects and fields. Dated exchange rates are not used in forecasting, currency fields in other objects, or currency fields in other types of reports.
• Organizations with advanced currency management support roll-up summary fields between two advanced currency management objects. For example, roll-up summary fields are supported from an opportunity line object to its opportunity object, because both are advanced currency management enabled. However, if you enable advanced currency management, you can’t create roll-up summary fields that calculate currency on the opportunity object rolling up to the account object, and you can’t filter on the opportunity currency field on the account object. All existing currency-related roll-up summary fields on the opportunity object are disabled and their values are no longer calculated. If your organization enables advanced currency management, you should delete any currency roll-up summary fields using opportunities and accounts or opportunities and custom objects.
• Campaign opportunity fields use dated exchange rates when calculating the amount in the campaign currency, but are not used when converting those amounts to the user currency.
• Cross-object formulas always use the static conversion rate for currency conversion.
• If advanced currency management is enabled, you can't bind Visualforce pages that use <apex:inputField> or <apex:outputField> components to currency fields that support advanced currency management.

Reference: About Advanced Currency Management