Configure Multiple currency Setup in Odoo
The first thing to do is to configure your currency setup. To do this, go to the menu, select Administration and then Financials > Settings > Currencies.
Configure Multiple currency Setup in Odoo
The first step is to set up your company’s currency.
To do this, go to Settings > General and click on the “Currency” field. You can then choose from one of the many currencies supported by Odoo (you should see those that are enabled by default). For example, if you want to use USD for your business transactions, select “US Dollar” from the dropdown menu.
Next, set up a chart of accounts for each currency in which you will conduct business: Accounts > Chart Of Accounts > New Account/Chart Of Accounts In The Menu Bar At the Top Right Corner Of Your Screen Or On A New Tab In Your Browser Window Under The Menus Section Once You Have Selected This Option Then Fill Out All Required Information And Hit Save Once Completed
The automatic update feature allows you to synchronize the exchange rate data automatically. You can set the automatic update to run every day, week, or month. The automatic update feature uses the exchange rate data from European Central Bank (ECB).
To manually update the currency information, follow these steps:
- Import a currency file. This can be done by going to Settings > Financials > Currencies and then clicking on “Import” at the top right corner of your screen. Select your file and click on “Upload”. You can also import bank statements, payment statements or journal entries using this method.
Exchange difference entries
Exchange difference entries are used to record the changes in the exchange rates of different currencies. These entries are created when a transaction is entered in a particular currency and then the same transaction is entered in another currency. For example, if you buy goods from an overseas supplier who accepts payment in USD but you want to pay them INR (Indian Rupees), then an exchange difference entry will be created automatically by Odoo as soon as you create your first sale invoice against this order line item.
Chart of accounts
The chart of accounts is a list of all the accounts in your company. The chart of accounts is used to track income and expenses, prepare financial statements and tax returns.
You can create multiple currencies by adding them to your chart of accounts.
Journals are used to record the transactions that have been posted to the general ledger. They can be set up to record transactions in multiple currencies.
For example, if you sell products in USD and EURO (or any other currency) then it makes sense that your journal entries would reflect those sales in their base currencies as well.
Multi-currency accounting is a feature in Odoo that allows you to track financial transactions in multiple currencies. This can be useful for companies that do business in multiple currencies, have customers from different countries, or want to keep track of their expenses across different locations.
In this tutorial we will configure the multi-currency module for our company and create accounts for each currency we want to use, as well as one account where all revenues and expenses are combined into one balance sheet account.
You can configure the payment registration in Odoo.
This feature helps you to configure the payment registration for your customers, vendors and employees. You can also customize the fields of payments using this feature and save it as custom object if needed for future use. In this tutorial, we will see how to create a custom object for payment registration?
The bank statement is a report of your bank transactions and balances. It’s used to reconcile the bank accounts and prepare financial statements.
Bank statements can be created on a daily, weekly, monthly or yearly basis. The frequency of creating your bank statement depends on how often you want to view your account information in Odoo.
Exchange rate journal entries
Exchange rate journal entries are used to record the difference between the exchange rate at which you purchase goods or services and their cost in your home currency. For example, if you buy US$1 million worth of equipment from a supplier in America, but they quote their prices in Euros (EUR), then every time you receive an invoice from them there will be an exchange rate difference between what you paid and what was invoiced:
- The invoice amount is EUR1 million;
- Your bank statement shows that USD1 million was converted into EUR2 million; therefore:
- Your profit margin on this transaction is 20%.
We have covered all the important aspects of setting up multiple currency in Odoo. You can now easily manage your business finances, accounting and reporting with ease.