Reference: Revenue Recognition Currency Conversion Rates for Foreign Currency Customer
Contracts
Workday provides these currency conversion rates for revenue recognition schedules and
accounting when you create customer contracts in foreign currencies:
Blended Rates
Workday only supports blended rates on foreign currency revenue recognition schedules and
accounting created before September 10, 2022. When billing occurs before revenue
recognition, Workday derives the foreign currency conversion rate for revenue
recognition installments and accounting using a weighted average calculation.
Scenario: Your company base currency is USD and you create a customer contract in EUR. The
conversion rate on the contract effective date is 1.350. You invoice the customer
quarterly, but recognize revenue from the contract monthly.
Billing and Revenue Schedule
Month | Conversion Rate | Billing in EUR | Revenue in EUR |
|---|---|---|---|
January | 1.360 | 30,000 | 10,000 |
February | 1.370 | 10,000 | |
March | 1.375 | 10,000 | |
April | 1.365 | 30,000 | 10,000 |
May | 1.350 | 10,000 | |
June | 1.360 | 10,000 | |
July | 1.375 | 30,000 | 10,000 |
August | 1.355 | 10,000 | |
September | 1.365 | 10,000 | |
October | 1.370 | 30,000 | 10,000 |
November | 1.345 | 10,000 | |
December | 1.355 | 10,000 | |
Total | 120,000 | 120,000 |
Billing and Revenue Schedule - Foreign Currency Conversion Rates on Contract
Date
Conversion Rate | Billing in USD | Revenue in USD | Net Deferred Balance in USD |
|---|---|---|---|
1.350 | 40,800 | 13,500 | 27,300 |
1.350 | 13,500 | 13,800 | |
1.350 | 13,500 | 300 | |
1.350 | 40,950 | 13,500 | 27,750 |
1.350 | 13,500 | 14,250 | |
1.350 | 13,500 | 750 | |
1.350 | 41,250 | 13,500 | 28,500 |
1.350 | 13,500 | 15,000 | |
1.350 | 13,500 | 1,500 | |
1.350 | 41,100 | 13,500 | 29,100 |
1.350 | 13,500 | 15,600 | |
1.350 | 13,500 | 2,100 | |
Total | 164,100 | 162,000 | 2,100 |
Invoice Rates
Workday only supports invoice rates on foreign currency revenue recognition schedules and
accounting created before September 10, 2022. When billing occurs before revenue
recognition, Workday derives the foreign currency conversion rate for revenue
recognition installments and accounting using the invoice rate.
Scenario: Your company base currency is USD and you create a customer contract in EUR. The
conversion rate on the contract effective date is 1.350. You invoice the customer
quarterly, but recognize revenue from the contract monthly.
Billing and Revenue Schedule
Month | Conversion Rate | Billing in EUR | Revenue in EUR |
|---|---|---|---|
January | 1.360 | 30,000 | 10,000 |
February | 1.370 | 10,000 | |
March | 1.375 | 10,000 | |
April | 1.365 | 30,000 | 10,000 |
May | 1.350 | 10,000 | |
June | 1.360 | 10,000 | |
July | 1.375 | 30,000 | 10,000 |
August | 1.355 | 10,000 | |
September | 1.365 | 10,000 | |
October | 1.370 | 30,000 | 10,000 |
November | 1.345 | 10,000 | |
December | 1.355 | 10,000 | |
Total | 120,000 | 120,000 |
Billing and Revenue Schedule - Foreign Currency Conversion Rates on Invoice
Date
Conversion Rate | Billing in USD | Revenue in USD | Net Deferred Balance in USD |
|---|---|---|---|
1.360 | 40,800 | 13,600 | 27,200 |
1.360 | 13,600 | 13,600 | |
1.360 | 13,600 | 0 | |
1.365 | 40,950 | 13,650 | 27,300 |
1.365 | 13,650 | 13,650 | |
1.365 | 13,650 | 0 | |
1.375 | 41,250 | 13,750 | 27,500 |
1.375 | 13,750 | 13,750 | |
1.375 | 13,750 | 0 | |
1.370 | 41,100 | 13,700 | 27,400 |
1.370 | 13,700 | 13,700 | |
1.370 | 13,700 | 0 | |
Total | 164,100 | 164,100 | 0 |
Contract Effective Date
When you set the default currency conversion rate on the revenue recognition schedule to
contract effective date, Workday uses the contract effective date to determine the
currency conversion rate.
Example: You create a foreign currency customer contract:
Option | Value |
|---|---|
Contract Line Amount | 12,000 EUR |
Term | 12 Months |
Contract Effective Date | 09/01/2022 |
Conversion Rate | 1.5 |
Base Currency Amount | 18,000 USD |
Transaction Currency Amount/Period | 1,000 EUR |
Base Currency Amount/Period | 1,500 USD |
You create revenue recognition installments:
The
Installment | Installment Date | Revenue Amount | Conversion Rate | Revenue Amount in Base Currency |
|---|---|---|---|---|
1 | 09/30/2022 | 1,000 EUR | 1.5 | 1,500 USD |
2 | 10/31/2022 | 1,000 EUR | 1.5 | 1,500 USD |
3 | 11/30/2022 | 1,000 EUR | 1.5 | 1,500 USD |
4 | 12/31/2022 | 1,000 EUR | 1.5 | 1,500 USD |
5 | 01/31/2023 | 1,000 EUR | 1.5 | 1,500 USD |
6 | 02/28/2023 | 1,000 EUR | 1.5 | 1,500 USD |
7 | 03/31/2023 | 1,000 EUR | 1.5 | 1,500 USD |
8 | 04/30/2023 | 1,000 EUR | 1.5 | 1,500 USD |
9 | 05/31/2023 | 1,000 EUR | 1.5 | 1,500 USD |
10 | 06/30/2023 | 1,000 EUR | 1.5 | 1,500 USD |
11 | 07/31/2023 | 1,000 EUR | 1.5 | 1,500 USD |
12 | 08/31/2023 | 1,000 EUR | 1.5 | 1,500 USD |
Total | 12,000 EUR | 18,000 USD |
Conversion Rate
and Revenue
Amount in Base Currency
display on the revenue recognition schedule
once you generate accounting.You create revenue recognition accounting:
Run Date | Accounting Date | Installment Date | Ledger Account | Debit Amount | Credit Amount | Conversion Rate | Ledger Debit Amount | Ledger Credit Amount | Calculation |
|---|---|---|---|---|---|---|---|---|---|
10/01/2022 | 09/30/2022 | 09/30/2022 | Deferred Revenue or Unbilled Receivables | 1,000 EUR | 1.5 | 1,500 USD | Base currency amount converted using the rate for the contract
effective date: 1,000 EUR × 1.5 = 1,500 USD | ||
Revenue | 1,000 EUR | 1.5 | 1,500 USD | ||||||
11/01/2022 | 10/31/2022 | 10/31/2022 | Deferred Revenue or Unbilled Receivables | 1,000 EUR | 1.5 | 1,500 USD | Base currency amount converted using the rate for the contract
effective date: 1,000 EUR × 1.5 = 1,500 USD | ||
Revenue | 1,000 EUR | 1.5 | 1,500 USD |
Revenue Recognition Installment Date
When you set the default currency conversion rate on the revenue recognition schedule to
revenue recognition installment date, Workday uses the installment date to determine
the currency conversion rate. When there isn't a rate for the installment date,
Workday uses the rate for the most recent date when you generate revenue recognition
installments and accounting. After you generate revenue recognition accounting, the
rates on the revenue recognition installment lines match the rates on the
operational journal lines.
Example: You create a foreign currency customer contract:
Option | Value |
|---|---|
Contract Line Amount | 12,000 EUR |
Term | 12 Months |
Contract Effective Date | 09/01/2022 |
Conversion Rate | 1.5 |
Base Currency Amount | 18,000 USD |
Transaction Currency Amount/Period | 1,000 EUR |
Installment Date | 09/30/2022 |
Conversion Rate | 2.0 |
Base Currency Amount | 24,000 |
Base Currency Amount/Period | 2,000 USD |
Installment Date | 10/31/2022 |
Conversion Rate | 1.8 |
Base Currency Amount | 21,600 USD |
Base Currency Amount/Period | 1,800 USD |
You create revenue recognition installments:
The
Installment | Installment Date | Revenue Amount | Conversion Rate | Revenue Amount in Base Currency |
|---|---|---|---|---|
1 | 09/30/2022 | 1,000 EUR | 2.0 | 2,000 USD |
2 | 10/31/2022 | 1,000 EUR | 1.8 | 1,800 USD |
3 | 11/30/2022 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
4 | 12/31/2022 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
5 | 01/31/2023 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
6 | 02/28/2023 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
7 | 03/31/2023 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
8 | 04/30/2023 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
9 | 05/31/2023 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
10 | 06/30/2023 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
11 | 07/31/2023 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
12 | 08/31/2023 | 1,000 EUR | Determined at the time of accounting | Determined at the time of accounting |
Total | 12,000 EUR |
Conversion Rate
and Revenue
Amount in Base Currency
display on the revenue recognition schedule
once you generate accounting.You create revenue recognition accounting:
Run Date | Accounting Date | Installment Date | Ledger Account | Debit Amount | Credit Amount | Conversion Rate | Ledger Debit Amount | Ledger Credit Amount | Calculation |
|---|---|---|---|---|---|---|---|---|---|
10/01/2022 | 09/30/2022 | 09/30/2022 | Deferred Revenue or Unbilled Receivables | 1,000 EUR | 2.0 | 2,000 USD | Base currency amount converted using the effective conversion rate
for the posting period: 1,000 EUR × 2.0 = 2,000 USD | ||
Revenue | 1,000 EUR | 2.0 | 2,000 USD | ||||||
11/01/2022 | 10/31/2022 | 10/31/2022 | Deferred Revenue or Unbilled Receivables | 1,000 EUR | 1.8 | 1,800 USD | Base currency amount converted using the effective conversion rate
for the posting period: 1,000 EUR × 1.8 = 1,800 USD | ||
Revenue | 1,000 EUR | 1.8 | 1,800 USD |
Schedule Override Rate
When you set the default currency conversion rate on the revenue recognition schedule to
schedule override rate, Workday uses the schedule override rate you specify to
determine the currency conversion rate.
Example: You create a foreign currency customer contract:
Option | Value |
|---|---|
Contract Line Amount | 12,000 EUR |
Term | 12 Months |
Contract Effective Date | 09/01/2022 |
Conversion Rate | 1.5 |
Base Currency Amount | 18,000 USD |
Base Currency Amount/Period | 1,500 USD |
Transaction Currency Amount/Period | 1,000 EUR |
Conversion Override Rate | 1.7 |
Base Currency Amount | 20,400 USD |
Base Currency Amount/Period | 1,700 USD |
You create revenue recognition installments:
The
Installment | Installment Date | Revenue Amount | Conversion Rate | Revenue Amount in Base Currency |
|---|---|---|---|---|
1 | 09/30/2022 | 1,000 EUR | 1.7 | 1,700 USD |
2 | 10/31/2022 | 1,000 EUR | 1.7 | 1,700 USD |
3 | 11/30/2022 | 1,000 EUR | 1.7 | 1,700 USD |
4 | 12/31/2022 | 1,000 EUR | 1.7 | 1,700 USD |
5 | 01/31/2023 | 1,000 EUR | 1.7 | 1,700 USD |
6 | 02/28/2023 | 1,000 EUR | 1.7 | 1,700 USD |
7 | 03/31/2023 | 1,000 EUR | 1.7 | 1,700 USD |
8 | 04/30/2023 | 1,000 EUR | 1.7 | 1,700 USD |
9 | 05/31/2023 | 1,000 EUR | 1.7 | 1,700 USD |
10 | 06/30/2023 | 1,000 EUR | 1.7 | 1,700 USD |
11 | 07/31/2023 | 1,000 EUR | 1.7 | 1,700 USD |
12 | 08/31/2023 | 1,000 EUR | 1.7 | 1,700 USD |
Total | 12,000 EUR | 20,400 USD |
Conversion Rate
and Revenue
Amount in Base Currency
display on the revenue recognition schedule
once you generate accounting.You create revenue recognition accounting:
Run Date | Accounting Date | Installment Date | Ledger Account | Debit Amount | Credit Amount | Conversion Rate | Ledger Debit Amount | Ledger Credit Amount | Calculation |
|---|---|---|---|---|---|---|---|---|---|
10/01/2022 | 09/30/2022 | 09/30/2022 | Deferred Revenue or Unbilled Receivables | 1,000 EUR | 1.7 | 1,700 USD | Base currency amount converted using the override rate for the
schedule: 1,000 EUR × 1.7 = 1,700 USD | ||
Revenue | 1,000 EUR | 1.7 | 1,700 USD | ||||||
11/01/2022 | 10/31/2022 | 10/31/2022 | Deferred Revenue or Unbilled Receivables | 1,000 EUR | 1.7 | 1,700 USD | Base currency amount converted using the override rate for the
schedule: 1,000 EUR × 1.7 = 1,700 USD | ||
Revenue | 1,000 EUR | 1.7 | 1,700 USD |