Exchange Rates and the Gains/Loss Report in Zuora Billing

By Lana Lee posted 05-24-2023 11:47


On May 18th, Enterprise Services Manager @Monique Romero  hosted a Finance Workshop and shared her best practices on exchange rates and the gains/loss report in Zuora Billing. 

 The session began with a Tool Tip on how to setup your home currency which is used to calculate your exchange rates in Zuora and it’s important to enable it if you process foreign currency.  Following the tool tip, Monique dove into the main topic on foreign currency gains and losses.

Enabling Home Currency in Zuora

To calculate conversion rates in Zuora, you can use the exchange rates posted by the default exchange rate provider, Oanda, or import custom exchange rates through the Mass Updater. Once Home Currency is set in your environment, it cannot be changed. Each transaction in Zuora has an Exchange Rate Date. If you are using Oanda, Zuora uses the exchange rates 1 or 2 days before the Exchange Rate Date depending on your time zone. 

Currency Types

  • Home currency: The currency you use to create financial reports. You only have one home currency.
  • Transaction currency: The currency used by the customer. See Billing and Payment Information.
    Default currency: The default currency set for your product rate plans. See Customize Currencies for more information.

Learn More

Check out the video below for a deeper understanding and view the presentation here.

Zuora Finance Tool Tip: Home Currency

Foreign Currency Gains and Losses

What Are Foreign Currency Gains and Losses? - Watch video to learn more

When you sell products or services to customers in a foreign currency, the value of that currency changes based on the exchange rate. If the value of the currency goes up or down after you invoice a customer but before you collect payment, then you have made a foreign currency gain or loss on that invoice.  Note: Your home currency must be configured before using this feature.

What Are Realized Gains and Losses? - Watch video to learn more

A gain or loss is "realized" when the customer pays the invoice.

Example: Home currency is USD

Calculation of Realized Gain

What Are Unrealized Gains and Losses? - Watch video to learn more

A gain or loss is "unrealized" if the invoice has not been paid by the end of the accounting period.

Example: Home Currency is USD

Unrealized Loss


How do I view my Foreign Currency Exchange Data? - Watch video to learn more

Note: Your accounting periods must be created and trial balance must be run for an up-to-date report.

In the Accounting period > Balances Tab > You can view:

  • Foreign Currency Exchange Summar
  • Realized Gain/Loss Detailed Report
  • Unrealized Gain/Loss Detailed Report

NOTE: Zuora does not create Journal entries for gains/loss. The reports are for your information, so you can create the JE’s in your ERP.


​​Reports in Accounting Period to create JE’s for Gains/Loss - Watch video to learn more

Screenshot from the accounting period below:

​​Reports in Accounting Period to create JE’s for Gains/Loss


It is a good best practice to run your trial balance several times a day so that it updates your balances and the accounting period so you will have the most current transaction summary created in the current month. 

Run your trial balance and once that completes, the balances tab will update where you will see the “Foreign Currency Exchange Gains/Loss” header. In that section, you’ll be able to download the details of the gains/loss - realized and unrealized.

Finance Best Practice Checklists

We know that there’s a lot to absorb at our Table Talks which is why we have created best practice checklists in the Community Resource Library that walk you through common activities like month-end and year-end close.  There are also many other resources for you to check out, so become a member of the resource library today!