While projects are configured and managed in their designated currency, Ruddr allows the overall business performance to be evaluated in a single currency. By default, this currency is the workspace's designated home currency. Ruddr handles real-time currency exchange by maintaining exchange rates between over 180 currencies on a daily basis. Ruddr has a comprehensive history of daily exchange rates between all supported currencies dating back to January 1, 1999. This database is updated once per day with the latest exchange rates.
As an example, let's assume a project has its currency set to Euro and the workspace's home currency is set to US Dollar. A five hour time entry is created today at a rate of €100.00 per hour for a total of €500.00. If the exchange rate between Euro and USD is 1 Euro equals 1.1 US dollars, then the revenue of the five hours converted into USD would be $550.00. The Project Dashboard for the project would show the revenue in Euro while the performance reports for the workspace would show the revenue in the home currency.
When Ruddr needs to convert from a project currency to the workspace's home currency, it uses the exchange rate on the date that the revenue is recognized in Ruddr. The date that revenue is recognized in Ruddr depends on the type of revenue, as detailed below:
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Time & Materials Services Revenue - Hourly services revenue on a Time & Materials project is recognized immediately when the time entry is saved. So, if today is April 5th and a member creates a billable time entry for April 3rd, that revenue will immediately be recognized on April 3rd. The time entry does not need to be approved and an invoice does not need to be published for this revenue to be recognized.
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Fixed Fee Services Revenue with "As Invoiced" Revenue Recognition - When a fixed fee project uses the "As Invoiced" revenue recognition method, the revenue for a billing milestone is recognized when an invoice including that milestone is published. The revenue is recognized as of the Issued Date of the invoice.
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Fixed Fee Services Revenue with "Manual" Revenue Recognition - When a fixed fee project uses the "Manual" revenue recognition method, the revenue is recognized as of the date of the revenue recognition ledger entry. An invoice does not need to be published for this revenue to be recognized.
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Other Items to Bill Revenue Recognition - Other Items to Bill are recognized as of the date in the item in the ledger. An invoice does not need to be published for this revenue to be recognized.
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Billable Expense Item Revenue Recognition - A billable expense item on an expense report is recognized immediately when it is saved. So, if today is April 5th and a member creates a billable expense item for April 3rd, that revenue will immediately be recognized on April 3rd. The expense item does not need to be approved and an invoice does not need to be published for this revenue to be recognized.
- Billable Project Expense Revenue Recognition - A billable project expense is recognized as of the date in the project expenses ledger. An invoice does not need to be published for this revenue to be recognized.
In each of the cases above, Ruddr will perform the currency conversion using the currency exchange rate on the day that the revenue is recognized. For more information, see the Multicurrency Overview help center article.