Currency
ERPNext has a list of global currencies. Each currency has its symbol, worth, and unit fraction (such as cents). The most popular currencies are pre-added. Exchange rates are updated automatically based on today's market rate. However, if you want to use fixed rates, it can be added manually using the Currency Exchange form.
How to Access?
For example: The Geat British Pound (GBP) page displays its symbol (£), fraction (penny), etc.
1. Steps to Create A New Currency
1. Currency List: Go to Currency List and click New.
2. Enabled Checkbox: This enables the currency in the system to be utilized in transactions and reporting.
Example: Checked, GBP is an enabled currency option in forms and invoices.
3. Fraction: Specifies the smallest unit name of the currency.
Example: For GBP, the minor unit is named "Penny" (similar to "Cent" for USD).
4. Fraction Units: Indicates how many smallest units constitute a unit of the base currency.
Example: 1 GBP = 100 Penny.
5. Smallest Currency Fraction Value: Specifies the minimum divisible value of the currency which can be used to make transactions.
Example: This should be 0.01 for GBP, since the smallest unit is 1 penny. The picture wrongly displays 0.00.
6. Symbol: The currency symbol used in monetary values.
Example: The British Pound symbol is £ and therefore £100 represents one hundred pounds.
7. Show Currency Symbol on Right Side (Optional): Enables positioning the currency symbol after the number rather than in front of it.
Example: If enabled, 100 pounds appears as 100£ rather than £100.
8. Number Format: Determines how numbers are formatted, including comma spacers and decimal positions.
Example: The format #,###.## will display 1234.5 as 1,234.5 and 1234567.89 as 1,234,567.89.
2. Configurations
Each currency has default values following internationally accepted standards (such as symbol, fraction, number format). These, however, can be adjusted according to your business needs. For instance, GBP might be set with 'Penny' as the fraction and '£' as the symbol, but you can rename the fraction to some custom value if required.
2.1. Enable/Disable Currencies
Most systems permit only a handful of major currencies to be active by default. To utilize others, navigate to the currency list, right-click, and mark "Enabled" to make it active.
For instance: If GBP does not have an active status in your ERP, right-click on its name in the list and enable it to enable its usage in transactions and reports.
2.2. Fractional Units
You are able to set or modify the smallest unit of a currency and what quantity of them constitutes one full unit. This encompasses its name and value.
For instance: For US Dollar, 1 Dollar = 100 Cents; for GBP, 1 Pound = 100 Penny. You can reassign 'Penny' to some other name if desired.
2.3. Currency Symbol
The system enables you to specify the symbol for the currency (such as $, ₹, £). You can also specify whether this symbol goes before or after the number. Also, you can turn off the symbol altogether from Global Defaults.
For instance: You can use '₹' or switch it to 'Rs' for Indian Rupee. You can pick between ₹100 or 100₹, or turn it off altogether for simple numeric outputs.
2.4. Fraction Units
This Specifies how many fractional units constitute one whole unit of currency.
For instance: 100 Penny = 1 GBP. This should be the value set to 100.
2.5. Smallest Currency Fraction Value
This option determines the lowest unit of currency that can be transacted. It prevents you from recording values less than actual circulating coins.
For instance: For GBP, this must be 0.01 (1 penny). Putting it at 0.00, as in the screenshot, is in error and can lead to rounding or payment problems.
2.6. Number Format
This option defines how numeric values for the currency are to be displayed. You can make thousands separators and decimal points adjustable.
For instance: Format "#,###.##" displays 1234567.89 as 1,234,567.89. You can adapt this to regional tastes, such as using dots rather than commas.
3. Related Topics
Currency Exchange (utilized to define manual exchange rates)