Management of Multi-Currency in Odoo

Steps

  1. Go to Accounting → Configuration → Settings

  2. Enable Multi-Currencies

  3. Click Save

  • Use different currencies in Sales, Purchase, Invoicing

  • Maintain exchange differences in accounting

Company Base Currency

Each company can have only one base currency.

Path

  • Settings → Companies → Your Company

Set

  • Currency (e.g., AED, USD, EUR)

⚠️ Important:

  • Base currency cannot be changed easily once transactions exist

  • Changing it later requires database-level correction

Activate Required Currencies

Odoo installs all currencies but keeps them inactive.

Steps

  1. Accounting → Configuration → Currencies

  2. Open the required currency (USD, EUR, INR, etc.)

  3. Enable Active

  4. Configure:

    • Currency Symbol

    • Position (Before/After amount)

    • Decimal places

    • Rounding factor

Exchange Rate Configuration

Manual Exchange Rate

  1. Open the currency (e.g., USD)

  2. Go to Rates

  3. Add:

    • Date

    • Rate

📌 Odoo uses:

  • The latest rate on or before the transaction date

Automatic Exchange Rates

  1. Accounting → Configuration → Settings

  2. Enable Automatic Currency Rates

  3. Select Rate Provider:

    • Central Bank of UAE

    • Set:

      • Update frequency (Daily)

      • Interval (e.g., every 1 day)

Currency on Transactions

Sales & Purchase Orders

  • Currency is selected on:

    • Quotation

    • RFQ

  • Price is converted to company currency during:

    • Invoice posting

    • Vendor bill validation

Invoices & Bills

  • Invoice currency ≠ Company currency

  • Accounting entry:

    • Original amount → foreign currency

    • Converted amount → company currency

📌 Odoo stores:

  • Amount in currency

  • Amount in company currency

Exchange Gain / Loss Accounts

Mandatory for accounting accuracy.

Path

  • Accounting → Configuration → Settings

Set:

  • Exchange Gain Account

  • Exchange Loss Account

📌 Used when:

  • Payment rate ≠ Invoice rate

  • Revaluation of foreign currency balances

Bank & Cash Journals Currency

Single Currency Bank

  • Set currency on the Bank Journal

  • All transactions must be in that currency

Multi-Currency Bank

  • Leave journal currency blank

  • Odoo allows mixed currency payments

Customer & Vendor Currency

Optional but useful for automation.

Path

  • Contacts → Customer/Vendor → Sales & Purchase tab

Set:

  • Default currency for:

    • Sales>Customer Currency

    • Purchases>Supplier Currency

📌 Automatically applied in new documents

Foreign Currency Revaluation

Used at month-end / year-end.

Path

  • Accounting → Review →Currencies → Unrealized Currency Gains/Losses

  • Run revaluation

  • Odoo posts:

    • Unrealized gain/loss entries