Manage a bank account in a foreign currency¶

In Odoo, every transaction is recorded in the default currency of the company, and reports are all based on that default currency. When you have a bank account in a foreign currency, for every transaction, Odoo stores two values:

The debit/credit in the currency of the company;
The debit/credit in the currency of the bank account.

Configuration¶

Activate multi-currencies¶

To work with multiple currencies, activate the currencies you need and, if required, the automatic update of their rates.

Create a new bank account¶

In the accounting application, go to Accounting ‣ Configuration ‣ Journals and create a new one. Enter a Journal Name and set the Type to Bank. In the Journal Entries tab, enter a short code, a currency, and then finally click on the Bank Account field to create a new account. In the pop-up window of the account creation, enter a name, a code (ex.: 550007), set its type to Bank and Cash, set a currency type, and save. When you are back on the journal, click on the Account Number field, and in the pop-up window, fill out the Account Number, Bank of your account, and save.

screenshot: accounting-foreign-currency-journal

menu: Accounting ‣ Configuration ‣ Journals ‣ (a foreign-currency bank journal)
shows: A bank journal form with the Journal Entries tab open, showing the short code, the foreign Currency, the Bank Account and the Account Number.
highlight: The :guilabel:`Currency` field (red frame).
data: Journal "Bank EUR", currency EUR, company currency HUF.
module: account
notes: English UI, light theme, 1440px width.

Upon creation of the journal, Odoo automatically links the bank account to the journal. It can be found under Accounting ‣ Configuration ‣ Accounting: Chart of Accounts.

Vendor bill in a foreign currency¶

To pay a bill in a foreign currency, simply select the currency next to the Journal field and register the payment. Odoo automatically creates and posts the foreign exchange gain or loss as a new journal entry.

screenshot: accounting-foreign-currency-bill

menu: Accounting ‣ Vendors ‣ Bills ‣ (a bill)
shows: A vendor bill header with the Currency field set to a foreign currency next to the Journal field, and the bill total displayed in that currency.
highlight: The :guilabel:`Currency` field (red frame).
data: Bill of 1,200.00 EUR in a HUF company.
module: account
notes: English UI, light theme, crop to the header.

Note

Note that you can pay a foreign bill with another currency. In that case, Odoo automatically converts between the two currencies.

Exchange differences¶

The exchange gain or loss realized when a foreign-currency invoice or bill is paid is posted automatically in the journal and on the accounts configured for it.