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Administrator Guide
Last Updated: 2023-06-23
Concept: Multicurrency

Concept: Multicurrency

Workday provides multicurrency capabilities to meet your money management needs. These capabilities enable you to record and process business transactions that occur in a currency other than the base currency of the recording company.
Example: A USD-based company can record a sale to a French customer with a EUR denominated invoice.
Workday also factors in the impact that multiple currencies have on all appropriate gain/loss calculations and accounting for your transactions and open items.
This diagram displays the flow of currencies through Workday Financial Management, as Workday converts them.
Currency Flow
Currency flows into operational transactions from various sources, depending on the transaction. Customers and suppliers have their own currency, which Workday automatically populates to customer and supplier transactions. For expense reports, Workday uses the company currency of the employee or the payment election currency of the employee (if the currencies differ). Items also have currencies associated with them. When used in transactions, Workday converts items to the transaction currency. Other transactions use the company currency as the default.
The currency of a submitted transaction is the transaction currency. This currency remains in place throughout the lifecycle of the transaction. Upon transaction approval, Workday generates operational journals and converts the transaction currency, if different, into the company currency for accounting purposes. When you create accounting journals, Workday also converts their currency into the company currency. Workday rounds conversions to the decimal precision of the currency.
When reporting, you can report in another currency. Workday uses translation rules that you define to determine conversion rates, then uses these rates to translate the company currency into a reporting currency.
Bank accounts also have their own currency in which to store funds. When necessary, Workday and banks convert currencies for deposited and transferred funds into the account.