Fx currency Configuration

[Ragavi]

Hi,

Could you please explain how FX currency configuration works? I’ve only been able to find ServiceNow definitions so far. A real-time example would be really helpful.

Thanks in advance

[Ankur Bawiskar]

@Ragavi 

good explanation here

What is the difference between currency & fx currency type fields in ServiceNow? 

Mastering Currency Settings in ServiceNow: Enable, Disable, Update, Set Default Currency Types, etc. 

How to Create a Multi Currency Catalog in ServiceNow | ServiceNow Tutorial 

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[Ankur Bawiskar]

@Ragavi 

Hope you are doing good.

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[Sarthak Kashyap]

Hi @Ragavi ,

In ServiceNow, FX currency configuration basically controls how different currencies are managed and converted in a multi-currency setup. It’s what allows you to enter an amount in one currency (say INR) and have it automatically converted into another (like USD) for consistency in reports or dashboards.

Let’s say your company works in multiple countries — the US, India, and Germany. You might have people logging costs or expenses in their local currencies (USD, INR, EUR). ServiceNow needs a way to translate all those numbers into a single “base” currency so that financial data makes sense when rolled up globally.

Here’s how it works behind the scenes:

1. You set a base currency, usually the company’s reporting currency — for example, USD.

2. You define a currency source. This could be something like the European Central Bank (ECB) or Open Exchange Rates — basically where the system will pull the exchange rates from.

   For example:

   • USD → INR = 83.25

   • USD → EUR = 0.91

   • EUR → INR = 91.49

3. When someone creates a record with a currency field (like “Cost” or “Amount”), the value is stored in the currency entered. But ServiceNow also keeps track of how that amount translates to the base currency.

So if an engineer in India logs a cost of ₹10,000 (INR), and the current rate is 83.25, ServiceNow will automatically calculate and store the equivalent in USD (≈ $120.10).
Now, if a user in Germany views that same record, their preferred currency might be set to EUR — so the system converts that USD value again, using the stored rates, and shows them roughly €109.87.

That way, everyone sees the same record in a currency that makes sense to them, but all reports still roll up consistently in USD.

In short, FX currency configuration handles:

• Where rates come from

• How often they’re updated

• How the system converts and displays values for users

It’s heavily used in modules like IT Business Management (ITBM), Procurement, or Financial Management, where cost data from multiple regions needs to be normalized for accurate reporting.

Please check below link:

https://www.servicenow.com/community/sam-articles/mastering-currency-settings-in-servicenow-enable-d...

Please mark my answer correct and helpful if this works for you

Thanks and Regards,

Sarthak