Multi Currency Setup

Use this setup sequence before entering live foreign-currency transactions. It connects the Company base currency, enabled currencies, account currencies, party defaults, Price Lists, exchange-rate policy, gain-or-loss accounts, and reporting controls. Completing the setup in this order prevents the most common mismatch: a foreign invoice whose party account or payment account is maintained in another currency.

The example Company, Nova Electronics Distribution, reports in USD and trades with EuroTech Retail in EUR.

Complete this configuration in a test Company first, then repeat it under controlled change management for each live Company and currency.

Decide the accounting model

Answer these questions before configuring ERPNext:

For the concepts behind these choices, read Multi Currency Accounting.

1. Confirm the Company currency

Open the Company and verify Default Currency. ERPNext uses it for base debit and credit values and Company financial statements. Changing it after transactions exist is a migration decision, not ordinary setup.

2. Enable required currencies

Open Currency, enable EUR, and review its symbol, fraction, and number format. Enabling a currency only makes it selectable. It creates no accounts or rates.

3. Create foreign-currency accounts

In the Chart of Accounts, create the ledgers that must keep foreign balances. For the example:

• Euro Bank, Account Type Bank, Currency EUR
• Euro Receivables, Account Type Receivable, Currency EUR
• Euro Payables, Account Type Payable, Currency EUR

Do this before posting entries. ERPNext does not allow an account's currency to be changed once ledger entries exist. Keep separate accounts for separate bank currencies even when the same institution supplies both balances.

4. Configure Customers and Suppliers

On the Customer, set Billing Currency to EUR. In Default Accounts, link Nova Electronics Distribution to Euro Receivables. Use the pencil in the child row to open the full editor.

Apply the corresponding setup on the Supplier with Euro Payables. A party's billing currency and account currency should agree with the normal invoice currency.

5. Create currency-specific prices

Create a EUR Price List when you maintain contractual or market prices in euros. Add EUR Item Prices. This is independent from the accounting rate. On a transaction:

• Exchange Rate converts the transaction total to Company currency.
• Price List Exchange Rate converts item prices when Price List currency differs from transaction currency.

When both the transaction and Price List use EUR, the Price List Exchange Rate is 1.

6. Define the exchange-rate policy

Create Currency Exchange records for approved or historical rates. Configure Currency Exchange Settings for provider fallback. Decide how Allow Stale Exchange Rates and Stale Days should work in Accounts Settings.

Document who may update manual rates, how often rates are reviewed, and whether buying and selling use the same rate. Store both directions when processes request both EUR to USD and USD to EUR.

7. Configure gain and loss accounts

In Company accounting defaults, set:

Use accounts approved by your accountant and local reporting policy. Some organizations separate gain and loss accounts or realized and unrealized presentation further through their chart and reporting design.

8. Test the complete cycle

Before importing or entering live data:

1. Create a draft EUR Sales Invoice and verify EUR and USD totals.
2. Confirm Debit To is Euro Receivables.
3. Create a draft EUR Purchase Invoice and confirm Credit To is Euro Payables.
4. Create a Payment Entry using the intended bank account and verify paid, received, and Company-currency amounts.
5. Run the General Ledger and Accounts Receivable and Payable reports.
6. Test Exchange Rate Revaluation in Draft for a closing date.

Do not stop at a successfully saved invoice. The payment and reporting tests reveal account-currency mismatches that are easy to miss during setup.

Record the tested document names, expected rates, account balances, and report filters in the implementation checklist. Repeat the test for each regularly used currency and for both receipts and payments. A EUR sales test does not prove that a GBP supplier payment or a foreign bank transfer is configured correctly.

Setup checklist

Troubleshooting

ERPNext prevents changing an Account currency

The Account already has ledger entries. Create a new account with the correct currency and plan the transition with your accountant.

The Customer defaults to EUR but the invoice uses USD

Check the selected Company, Debit To account, Billing Currency, transaction Currency, and whether the multi-currency-single-party-account setting changes the normal restriction.

A Payment Entry has unexpected paid and received currencies

Review the paid-from and paid-to accounts. Their account currencies drive those fields.

FAQs

Do I need a separate receivable account for every Customer?

No, you can share one EUR receivable account across EUR Customers and use party dimensions in receivable reports. Separate accounts by currency or accounting need, not automatically by Customer.

Should I enable Allow multi-currency invoices against single party account?

Only when the business genuinely invoices the same party in multiple currencies and has tested payment, outstanding, reconciliation, and reporting behavior. A dedicated account per regular currency is easier to reason about.

Can the provider replace all manual Currency Exchange records?

It can supply market rates for supported pairs. Manual records remain useful for approved, historical, unsupported, or contract rates.

Should revaluation be automatic?

Start with a reviewed manual process. Enable automatic creation only after the rate source, accounts, frequency, journal submission policy, and period-close controls are proven.

Related topics

• Multi Currency Accounting
• Managing Transactions in Multiple Currency
• Currency Exchange
• Manage Foreign Exchange Difference
• Exchange Rate Revaluation