Currency Exchange
In ERPNext, Users can define and save manual exchange rates between currencies by using Currency Exchange form. ERPNext automatically pulls current exchange rates from the web, but companies have the option to use their own fixed rates for certain transactions. This is particularly helpful in areas where official or agreed rates deviate from the market or when dealing with contracts that call for locked-in rates.
You must enable the "Allow Stale Exchange Rates" option in the Accounts Settings in order to use these manually set rates. Once enabled, ERPNext will give your stored rates (from the Currency Exchange form) precedence over rates that are automatically retrieved, regardless of how old the stored rates are. The source currency, target currency, exchange rate, date, and company must all be specified for each entry. Sales, purchases, and accounting entries involving multi-currency conversions then make use of these manual rates.
To access the Currency Exchange list, go to:
1. How To Create A Currency Exchange
1.1. Go to the Currency Exchange List and Click on New
Click the "New" button after selecting Accounts > Currency Exchange. This will open a new form where you can manually specify the exchange rate and currency pair.
1.2. Enter the start date of this exchange rate's validity.
Select the date that this rate should begin to apply in the Date field. After this date, ERPNext will process transactions automatically using the most recent applicable rate.
1.3. Set the From and To currency
The base currency, USD (U.S. Dollar), should be entered in the From Currency field. The currency you are converting to is GBP (British Pound), so enter it in the To Currency field.
1.4. Enter the Exchange Rate, e.g., 1 USD = 0.76 GBP.
Enter the precise conversion in the Exchange Rate field, such as 0.76 if 1 USD is equivalent to 0.76 GBP. This implies that this manual rate will be used to convert any USD transaction to GBP.
1.5. Decide if the exchange rate is applicable for buying, selling, or both.
If this rate should be applied when you are selling products or services, select Selling. If it pertains to purchases, select Buying; if it applies to all kinds of transactions, select Both.
1.6. Select "Save."
Click the Save button after entering all the information. As of the designated date, the exchange rate is now saved and will be applied to pertinent transactions.