Odoo Multi-Currency: Rates, Invoices and Revaluation

If you buy or sell in more than one currency, your ERP must convert amounts correctly, record exchange gains and losses, and report in your company currency. Odoo handles all of this once it is configured properly.

Activating currencies

Each company has one company currency, which is what the books are kept in. Other currencies are activated in the accounting settings. Activate only the ones you use, so the currency lists stay short and rate updates stay fast.

Exchange rates

Odoo stores a rate per currency per date. You can:

• Fetch rates automatically from a provider such as a central bank, daily, weekly or monthly.
• Enter rates manually, for example if your auditor requires a specific source.

Each document uses the rate of its accounting date. Check that the provider you choose is acceptable for your tax authority.

Foreign currency invoices and bills

Set the currency on the invoice or bill, and Odoo shows amounts in that currency while posting journal items in both the foreign and company currency. Customers and vendors can have a default currency through their price list or payment terms, so users rarely need to change it by hand.

Payments and exchange differences

When the payment arrives at a different rate, Odoo posts the difference to the exchange gain or loss account when the payment is reconciled. This happens automatically, which is one of the biggest time savers compared with spreadsheets.

Bank accounts in foreign currencies

A bank journal can have its own currency. Statements imported into a USD journal stay in USD, and reconciliation with USD invoices is straightforward. Paying a EUR invoice from a USD account also works, with the conversion recorded.

Month-end revaluation

Many companies must revalue open foreign currency balances at month end, such as receivables, payables and bank balances. Depending on your Odoo version and localisation, this can be done with the unrealised currency gains/losses report and an adjustment entry, often reversed on the first day of the next month. Agree the method with your accountant before go-live.

Reporting

Financial reports are produced in the company currency. Aged receivables and payables can show foreign currency amounts too, which is useful for collections.

Checklist before go-live

1. Activate only the currencies you need.
2. Choose and test the rate provider.
3. Set exchange gain and loss accounts.
4. Create foreign currency bank journals.
5. Import open foreign currency invoices with their original rates.
6. Agree the revaluation process with your accountant.

For a full accounting rollout, see our Odoo accounting setup guide or our Odoo accounting services.