Managing Exchange Rate and Price Variations in Work 365

Applies to: Work 365 | Audience: Administrators, Finance Teams, CSP Partners

Overview

In Work 365, handling price variations due to currency fluctuations is crucial for accurate billing and financial reporting. This guide outlines the steps to manage exchange rate variations effectively by configuring currency records and regularly updating exchange rates.

Steps to Manage Exchange Rate and Price Variations

1. Set Up Necessary Currency Records

To ensure proper currency handling, configure the required currencies in Dynamics 365.

✅ Navigate to:
Settings > Business Management > Currencies

✅ Add a new currency:
✔ Click New.
✔ In the Currency Code field, select the desired currency (e.g., USD, EUR, GBP).
✔ Specify the conversion rate relative to your base currency.
✔ Click Save to store the currency record.

2. Assign Currencies to Subscriptions and Billing Contracts

✅ Assign the appropriate currency to each subscription based on the currency in which costs are incurred (e.g., USD for Microsoft CSP subscriptions).
✅ Set the billing contract currency to the currency in which you charge the customer.
✅ Ensuring that each billing contract is correctly assigned will prevent errors in currency conversions during invoicing.

3. Regularly Update Exchange Rates

To maintain accurate billing, exchange rates should be updated periodically.

✅ At the beginning of each billing cycle, obtain the latest exchange rates from reliable sources, such as:
✔ Microsoft Partner Center
✔ Financial exchange rate providers (e.g., OANDA, XE, or your banking institution)

✅ Update the Exchange Rate in Work 365:
✔ Navigate to: Settings > Business Management > Currencies
✔ Locate and edit the relevant currency record.
✔ Ensure that the Exchange Rate field reflects the current rate.
✔ Click Save to update the changes.

Important Considerations

Consistency
✔ Regularly updating exchange rates ensures that billing reflects current currency values, minimizing discrepancies.
✔ Ensure your accounting and ERP systems align with the updated exchange rates in Work 365.

Automation
✔ Consider integrating automated exchange rate updates using services like OANDA or Microsoft Partner Center API to streamline the process and reduce manual work.

Impact on Billing
✔ Exchange rate fluctuations affect the final charges billed to customers.
✔ Be transparent with customers regarding potential currency-based pricing variations.