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Exam ADM-201 topic 1 question 99 discussion

Actual exam question from Salesforce's ADM-201
Question #: 99
Topic #: 1
[All ADM-201 Questions]

Your organization is a US-based company with a default currency of US Dollars. As a sales rep, your personal currency set to British Pounds. You create an opportunity with a currency in British Pounds. The administrator updates the currency conversion rates. Which of the following best describes what happens to the amount of your British-Pound-based opportunity?

  • A. The overall opportunity amount does not change but the converted amount in a report does.
  • B. The overall opportunity amount and converted amount in a report changes
  • C. Only newly created opportunities reflect the change
  • D. Only historically created opportunities reflect the change
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Suggested Answer: A 🗳️

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Jon_C
Highly Voted 1 year, 4 months ago
The opportunity amount wont change just because the conversion rate changes. The price in British Pounds is how much the product costs regardless of the exchange rate. The only reason the opportunity amount would change is if there was a discount applied, they had a coupon, you get the picture. The reason the amount in the report changes is because your company is based in the US, and you use USD as you currency, so any fluctuation in the exchange rate would cause the converted amount to change. The converted amount is what's being reflected in the report. Example: Opportunity created for $50,000 EUR with an exchange rate of 1.25 = $44.247.79 USD. Change the exchange rate to 1.00 and the reported amount, and the actual amount, will then both be $50,000. Any future changes will only change the converted amount. The opportunity amount will always remain the same as long as no new items are added. (I hope this helps)
upvoted 19 times
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J_Cat27
Most Recent 11 months, 1 week ago
I agree with Jon_C, the Answer seems more based on the language used in the Answer, once of timing rather than a function of Salesforce. The Opportunity is in the past, already created and then the currency update is effected. A Report produced thereafter would be impacted by the Admin's update.
upvoted 1 times
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Sayan_Debnath_007
1 year, 4 months ago
Overall amount means the actual amount that does not change but the figure after conversion changes....this may be the logic..!!
upvoted 1 times
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Audrey00_00
1 year, 6 months ago
Hi PradeepA, I would also go for B answer. Answer A is weird, can someone give us more details ? Thanks Audrey
upvoted 1 times
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PradeepA
1 year, 9 months ago
Shouldn't it be B? When you change the conversion rates, currency amounts are updated using the new rates. Previous conversion rates are not stored. All conversions within opportunities, forecasts, and other amounts use the current conversion rate. If your organization uses advanced currency management, you can also manage dated exchange rates for currency fields on opportunities and opportunity products.
upvoted 3 times
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