A currency is a system of money in common use, especially in a nation. Under this definition, Indian rupee, US dollars, British pounds, Australian dollars, and European euros are examples of currency. Odoo provides features that support multi-currencies. Any company that does international trade receive payments in different currencies. This can be handled by enabling multi-currency in Odoo. Choosing to use the multi-currency option in Odoo. Odoo will enable you to send quotes, sales invoices and purchase orders or receive payments and bills in currencies other than the default/domestic currency.
In this blog, you are going to discuss how to manage multi-currency in Odoo. Odoo is an all-inclusive ERP bundle which suits the worldwide and as well as most of the local standards. In Odoo, the client can design various monetary standards, set its conversion scale and dole out various monetary standards. Odoo provides multi-currency support with automatic currency gross or loss entry adjustment.
Now let’s see how to manage multi-currency in Odoo:
Enabling this option allows for handling multiple currencies in Odoo.
Go to Accounting module -> Configuration -> Setting and enable “Allow multi currencies”, then click on Apply.
Rate Difference Journal:
The Rate Difference Journal records the differences between the payment registration and the expected amount. Whenever a payment is paid one month after the invoice was expressed, the exchange rate has possibly changed. It is used to create journal entry of loss or profit generated by the difference of currency exchange rate that is recorded by Odoo. Click the arrow button in Rate Difference Journal and set the exchange rate so that you can balance the possible loss/gain from the fluctuation of currency exchange rates.
Set the Currency rate:
Now you can configure the currency rates. Go to .
- Open the currencies and you can views the list of currencies and choose any currency from the list that you want to use in Odoo and edit it. Make sure the currency is active.
Now Click on View Rates to view the history.
2. Now you can create new required currency by clicking on the >Create button. Fill in the date and the rate. Click on Save when you are done.
In the enterprise version of Odoo. >Automatic currency rates, which updates the currency rates automatically.
Multi-Currency in Chart of Accounts:
You can also set the currency to accounts. In the accounting application, Go to Adviser –> Charts of Accounts. On an individual account, you can set a currency. Whenever you leave it empty, it means that it can handle all Active currencies.
Multi-Currency in Journal:
Now let us see how the multi-currency feature is used in accounting journals. To configure different currency for individual journals.
- Go to Accounting > Configuration > Accounting > Journals.
Click the Currency drop-down and select the currency. If we leave it empty, it means that it can handle all the currencies that are Active.