Chapter: 3 - Configuration tools in Accounting module

Currency Management

In the case of the operations of a multinational business where there are customers and vendors from different parts of the world, the need for an effective as well as excellent currency management system is inevitable. This is because the vendor bills, invoices, and other payments will be made concerning their currency and the organization will have a specified set of currency upon which the entire operation of the organization is managed. The Odoo platform supports the operations of the business to be run in multiple currencies and the effective management of it.

There is a dedicated Currencies management menu available in the Accounting module which can be accessed from the Configuration menu of the module. Here all the Currencies of operation in the world will be depicted. In the menu each of the currencies will be depicted with the Currency Name, Symbol, Date in which it updated, Current Rate concerning the base currency set, and there is an Active option that can be enabled or disabled based on the need.

Currency Management

In case you have to configure the currency you can select the respective currency and will be depicted with the configuration window as depicted in the following image. Here you can define the Currency Name, Currency Unit, Currency Rate, Currency Subunit and the Active options which can be enabled or disabled can be defined.

Currency Management

To know about the Rates of the Currency by selecting the Rates options available which will direct you towards the Rates menu of the respective currency as depicted in the following image. Here you will have the option to Create New Rates for the Currency based on the exchange rate updations. In the menu, the Date, as well as the rate of modification, will be defined.

Currency Management

Additionally, in Odoo you can enable the Automated Currency Rate updation which is available in the Settings menu of the platform under the Accounting module section. Here, under the Currencies configuration options which are being defined, you can enable the Automated Currency Rates option. Here the Service provider for the Currency Rate updation can be chosen from the list defined and can be chosen as European Central Bank, Federal Taxation Administration(Switzerland), Mexican Bank, Bank of Canada, and many more which will be based on the region of your company operation. Moreover, the Interval of the updation of the Currency Rates can be either selected as Manually, Daily, Weekly, or Monthly. If the update rate is set as Manually, then the next date of the Updation should be defined.

Currency Management

The Currency Exchange rates are being effectively managed in Odoo with the help of the Post Exchange differences entries tool that is available in the settings menu of the Accounting module. Here the Journal along with the Gain Account and the Loss Account will be defined. On the one hand, if the transaction attains a Loss due to the change in the Exchange Rates it will be defined in the Loss Account which is being described. On the other hand, if the transaction gains a certain amount due to the change in Exchange Rates then the amount will be Credited to the Gain Account which is being described.

The multi-currency management model of the Odoo platform will support the operations of international business. As we are clear on the aspects of multi-currency management in Odoo accounting, let's now move on to understanding the aspects of Fiscal position management in the next section.

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