Managing multiple currencies efficiently is essential for businesses that operate internationally. Odoo 18 Accounting offers robust multi-currency features that help businesses streamline transactions, financial reporting, and currency rate updates. Whether you are a growing enterprise or using Odoo for Small Business, understanding multi-currency management ensures accurate financial data and better decision-making.

Enabling Multi-Currency in Odoo 18

To start using multiple currencies in Odoo 18, you need to enable the feature in your accounting settings:

1. Go to Accounting Module: Navigate to Settings under the Accounting app.
2. Enable Multi-Currency: Look for the Multi-Currency option and activate it.
3. Save Changes: Click the Save button to apply the settings.

Once activated, Odoo allows transactions in different currencies while automatically converting them based on exchange rates.

Configuring Currencies in Odoo

After enabling multi-currency, you need to configure the currencies that your business deals with:

1. Go to Accounting > Configuration > Currencies.
2. Add New Currency: Click Create to add new currencies.
3. Set Exchange Rates: Define exchange rates manually or enable automatic updates.
4. Define Active Currencies: Make sure the currencies you use are set as Active.

Odoo provides automatic exchange rate updates from various sources like the European Central Bank (ECB) or other third-party providers.

Managing Currency Rates Automatically

Odoo allows businesses to automatically update currency rates to ensure financial accuracy:

1. Go to Accounting > Configuration > Currencies.
2. Enable Automatic Rate Update: Select a provider like ECB, Yahoo Finance, or Custom API.
3. Set Frequency: Choose the frequency of updates (daily, weekly, etc.).
4. Save the Configuration.

This feature ensures that your financial reports always reflect the latest exchange rates, reducing errors in currency conversion.

Recording Multi-Currency Transactions

When handling international sales, purchases, or expenses, Odoo 18 seamlessly manages foreign currency transactions:

• Sales & Invoices: When creating an invoice, select the customer’s preferred currency. Odoo will apply the latest exchange rate.
• Purchases & Vendor Bills: Select the supplier’s currency when recording expenses or vendor invoices.
• Bank Transactions: Odoo handles bank transfers in different currencies by converting them based on real-time exchange rates.

Custom Code for Currency Conversion

Sometimes, businesses need a custom approach to currency conversion. Below is an example of a Python snippet to fetch and update exchange rates in Odoo:

from odoo import models, fields, api

import requests

class CurrencyRateUpdate(models.Model):

    _inherit = 'res.currency'

    @api.model

    def update_currency_rate(self):

        api_url = "https://api.exchangerate-api.com/v4/latest/USD"

        response = requests.get(api_url)

        if response.status_code == 200:

            data = response.json()

            for currency in self.search([]):

                if currency.name in data['rates']:

                    currency.rate = 1 / data['rates'][currency.name]

        return True

This script fetches live exchange rates from an external API and updates them in Odoo’s currency settings. It can be scheduled to run daily using Odoo's cron jobs.

Generating Multi-Currency Financial Reports

Odoo 18 enables businesses to generate multi-currency financial reports, including:

• Profit & Loss Statements: Display amounts converted into the company’s default currency.
• Balance Sheets: Summarize assets and liabilities in various currencies.
• Tax Reports: Convert and calculate tax liabilities based on real-time exchange rates.

These reports ensure that businesses have an accurate overview of their financial performance across different currencies.

Conclusion

Managing multi-currency transactions and currency rates in Odoo 18 is essential for businesses dealing with international clients, suppliers, or subsidiaries. By enabling multi-currency features, setting up automatic exchange rates, and leveraging Odoo’s financial reports, companies can maintain accurate financial data effortlessly. If you need expert guidance on implementing multi-currency accounting in Odoo, consider hiring an Odoo consultant to streamline your financial operations and maximize efficiency.