How to Manage Multi-currency in Odoo 18 Accounting
Overview
Odoo multi-currency feature allows users to create and send sales invoices, sell quotations, and purchase orders in different currencies. Activating this option allows the use of other currencies for transactions, the creation of reports for activities done in foreign currencies. Odoo's multi currency feature enables companies to be able to transact within their business in other currencies; this includes the issuance of invoices, receipt of bills, recording of transactions, opening of bank accounts and the reporting of foreign currency activities.
Configuring Currencies
The first currency is the one that is used in the country in which the firm carries on its business activities. For the departments, to configure currencies in your accounting module, open the ‘Currencies’ field under the ‘Settings’ section in the ‘Configuration’. In this step, you can fill out the basis in the ‘Main Currency’ space provided in the following example.
You can go to the “Currencies” link or to the “Currencies” window from the “Accounting” section of the “Configuration” menu to create and manage different currencies.
Moreover, there is a provision to manage and create different currencies through the “Currencies” module available in the menu “Configuration” under the subsection “Accounts”.
In this case, the accounting processes for the selected entity would be carried out mainly in USD as the default functional currency. Nevertheless, additional currencies can also be managed for your business. Under the Currencies area, check the box that reads ‘Automatic Currency Rates’ to ensure that the currency rates are automatically refreshed. As depicted in the illustration, allow automatic updates by turning on this field.
In the “Service” section, you can choose an online service provider that supplies exchange rates information. Odoo also supports you in automating the currency rate updates on a daily, weekly, or monthly basis by altering the setting from Manual to the desired option. Then, once the interval is selected, the date and time for the next synchronization of the database with the provider is indicated in the subsequent field, “Next Run”. When you have done that, after setting the currency rates records for a given day ensure that you do not perform any activity until the next synchronization takes place. Now let me cancel out of this and show you the steps to handle.
Creating Multi Currencies in Odoo
To configure or manage multiple currencies within your accounting platform, navigate to the "Currencies" section under the "Configuration" menu. This section displays a dashboard containing all the currencies previously created and available in your Odoo Accounting Database, along with details such as Currency Name, Symbol, Last Updated, Current Exchange Rate, and eBay Usage.
To enable a specific currency, simply click the toggle button located in the "Active" section beside the desired currency. For instance, as shown in the screenshot below, you can select USD from the list in the Currencies window. If you need to add a new currency, click on the "New" button in the Currencies window (refer to the image above). This action will open a configuration form, similar to the one displayed below, where you can input the necessary details for the new currency.
Modify the currency prefix in the 'Currency' field, and then enter the 'Name,' 'Symbol,' 'Currency Unit,' and 'Currency Subunit' in their respective fields.
In the 'Rates' tab, you can configure exchange rates for various dates and companies. Additionally, you can define the currency unit per USD and USD per unit. For example, in the provided screenshot, the USD rate of 4.51 has been set to 0.22 This rate will be applied to calculations involving this currency. Let’s explore the process further.
Create Vendor Bills
To verify the functionality of multicurrency, navigate to the "Bills" section located under the "Vendors" tab in Odoo. Here, you can create a new vendor bill or invoice. The Bills window, as illustrated in the screenshot, displays all generated bills along with details such as the vendor name, bill date, reference number, total amount, status, and due date.
To create a new vendor bill, first select the 'New' option to open the relevant window. In this window, you can generate a vendor bill by choosing the supplier in the 'Vendor' field and providing the reference for the bill in the 'Bill Reference' field. Enabling the 'Auto-Complete' feature will populate certain fields automatically based on the details of the previous bill associated with the same vendor. Next, input the accounting date in the 'Accounting Date' field and specify the invoice date in the 'Bill Date' field. Additionally, you can enter a 'Payment Reference' and choose the 'Recipient Bank' if needed. Finally, set the due date in the 'Due Date' field, select the appropriate journal for the bill in the 'Journal' field, and ensure the currency is set to USD.
In the 'Invoice Lines' tab, you can add products to the vendor bill along with details such as the product label, landed costs, account, analytic distribution, quantity, unit of measure (UoM), price, taxes, and the tax-exclusive amount. For example, a customizable desk can be added with a price of $500.
