Odoo ERP Supports Multi-Company and Multi Currency

Case Overview

Some companies have business operations in multiple countries where they need to buy, sale or maintain bank accounts in different currencies. And hence there is impact on accounting as well. Odoo manages multi currencies in Accounting automatically.

Take an example of one transaction in Accounting. ABC Company in USA selling one Unit of computer for USD (US Dollar) 1000 to a Canadian Company XYZ. When the transaction happened 1 USD was equivalent to 1.30 CAD (Canadian Dollar). As per the terms XYZ will pay them after 15 days.

Understanding the Multi-Currency Transaction

When transaction happend Journal entries in the accounts of ABC will be

Transaction

Debit

Credit

Sales

1000

Accounts Receivable

1000

After 15 days, XYZ pays 1300 CAD to ABC. But after 15 days value of 1 USD is 1.10 CAD. The transaction becomes as follows.

Transaction

Debit

Credit

Bank Account

1181.81

Accounts Receivable

1181.81

It can be seen that at the end of transaction ABC earns more ($181.81). The gain is recorded as follows:

Transaction

Debit

Credit

Exchange Gain

181.81

Accounts Receivable

181.81

This record of exchange gain is atomatically maintained by Odoo 14.

How to configure Multi-Currency in Odoo ERP ?

To configure the multi-currencies go to accounting module>Configure>Settings and enable multi-currencies. Select the server and Interval, you want currency to be updated. When you set as daily or weekly odoo automatically syncs the value of currencies.

Activate the currencies you are dealing with.

Create a new invoice. Go to Accounting dashboard and select create invoice. Select CAD first and add product. This is the order when Value of CAD is 1.3000000 for USD 1.00

Now, changing currency rate manually to show the difference. Currency is changed to CAD 1.10 for USD 1.00. To do that, go to Configure>Currencies>Select currency>create. Add date and edit the rate.

Change the currency rate for the period mannually if it is not sync daily or weekly from server.

Now go to the invoice and click on register payment.

Select proper date of payment so that Odoo can automatically update the currencies.

As the date selected for the payment is 01/29/2021, it will automatically take different exchange rate. To check the exchange rate gain or loss, go to Reporting>Unrialized Currency Gain/Losses.

You will be able to see adjustment of 181.82.

Thus, Odoo takes care of the currencies while having any transaction in multiple currencies.

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