Foreign Exchange Rates - Update product catalog
Keeping in sync the latest foreign exchange rates, how does Zuora handle the conversion rates that we populate for each currency when the product is created in Zuora ?
Also, we have a requirement where the subscriptions are created Ever Green with customer paying the invoice in monthly in advance plan. So, for future invoices, how does the updated currency price get applied on these ?
Re: Foreign Exchange Rates - Update product catalog
Zuora doesn't change product catalog pricing based on exchange rates. While Zuora has an FX feature, that's not what this feature does. Zuora expects the price to specified for each market in the relevant currency and that this price will NOT fluctuate based on exchange rate changes. There are other factors that might imact a price for a market beyond exchange rates, you might have local competitors or have the opportunity to raise prices for more affluent markets such as the Euro zone. And customers rarely appreciate having their billed amount change based on changing exchance rates.
Up in billing settings there is a 'customize currencies' panel where you can enable or disable multiple currencies. For those currencies tagged as active you can then go into the product catalog and anywhere there is a price specified, click on the little green arrow icon just to the right of the price field, and then specify pricing for that charge in the active currencies. Again, you're expected to specify a specific price in each currency. Once this is done then customer accounts in those currencies will see those prices.
Zuora's FX feature is all about reporting, once enabled you'll be able to see the home currency equivalent for any transaction in any currency and that amount will be based on the applicable exchange rate for the relevant transaction date. The exchanges rates are either provided by Zuora or you can load your own, but if your customer is being billed in British Pounds they only ever see pricing in British Pounds and they are billed a constant amount in British Pounds. Zuora FX will allow you record FX gains and losses each accounting period and to considate reporting in a single currency, say, USD.
Many customers are confused by the Rate column back in the Customize Currencies Billing Settings page, that Rate column doesn't actually do anything and it should be removed. Again, that Rate column is ignored and has no impact anywhere in Zuora. You have to set pricing for each charge and then our actual FX feature will make it easy to do consolidated reporting of your financials in a chosen 'home' currency.
Hope this helps, please let me know if you have any more questions or concerns.