How to Manage Foreign Currency in Odoo17 Accounting

In Odoo, every transaction is initially recorded in the default currency of the company, forming the foundation for financial data management. Currency rates update automatically using bank services, often from the European Central Bank. This keeps financial reports accurate, helping decisions.

1. How to Manage Foreign Currency in Odoo 17 Accounting Enterprise

2. Introduction Enterpr ise In Odoo, every transaction is initially recorded in the default currency of the company, forming the foundation for financial data management. Currency rates update automatically using bank services, often from the European Central Bank. This keeps financial reports accurate, helping decisions.

3. Enterprise How to configure and activate multi currencies To configure and activate multi-currency in Odoo, navigate to Accounting → Configuration → Settings. Here, enable the Automatic Currency Rates option. Then, select the appropriate service for fetching currency rates, set the interval at which the currency rates should be updated, and specify the next run time for the currency rate updates. This setup ensures that our company can handle transactions in multiple currencies with up-to-date exchange rates.

4. Enterprise

5. Enterprise Go to Configuration → Currencies. Activate the currencies that you need.

6. Enterprise Create a bill and select the currency for the vendor. Then observe that the currency and prices of the invoice lines that are added afterward will automatically adjust accordingly.

7. Enterprise Once the bill is confirmed, we will find the changes under Reporting → Unrealized Currency Gains/Losses.

8. Enterprise We can also change the exchange rates of active currencies, apply them, and thus use custom exchange rates.

9. Enterprise Also, we can reset back to Odoo's default rate from custom exchange rates.

10. Enterprise We will find the default accounts for posting exchange differences by navigating to Accounting → Configuration → Settings.

11. Enterprise The screenshot below shows the balance of the Post Exchange Difference Gain account before registering the payment of the bill that we created.

12. Enterprise The screenshot below shows the balance of the Post Exchange Difference Loss account before registering the payment of the bill that we created.

13. Enterprise After registering the payment of that bill, we will notice the change in the balance. The screenshot below shows the difference in the Post Exchange Difference Gain account.

14. Enterprise After registering the payment, no data will be displayed in the Unrealized Currency Gains/Losses report.

15. For More Info. Check our company website for related blogs and Odoo book. Check our YouTube channel for functional and technical videos in Odoo. Enterprise www.cybrosys.com