> For the complete documentation index, see [llms.txt](https://vezolve.gitbook.io/activebooks/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vezolve.gitbook.io/activebooks/accounts/introduction/advanced/multi-currency-accounting.md).
# Multi Currency Accounting
* In ActiveBooks, you can make accounting entries in multiple currencies.
* For example, if you have a bank account in foreign currency, you can make transactions in that currency and the system will show bank balance in that specific currency only.
Bank accounts in foreign currencies can be for other branches of your own company or Debtors/Creditors account for foreign Customers/Suppliers.
### 1. Setup[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#1-setup)
#### 1.1 Set currency in Chart of Accounts[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#11-set-currency-in-chart-of-accounts)
To get started with multi-currency accounting, you need to assign accounting currency in the Account record.
You can define Currency from Chart of Accounts while creating an Account.
#### 1.2 New account with different currency[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#12-new-account-with-different-currency)
You can also assign/modify the currency by opening specific Account records for existing Accounts.
#### 1.3 Currency for Customer/Supplier[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#13-currency-for-customersupplier)
For Customer/Supplier (Party), you can also define its billing currency in the party record.
If the party's accounting currency is different from Company Currency, you should mention Default Receivable/Payable Account in that currency.
#### 1.4 After setup[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#14-after-setup)
Once you define Currency in the required account(s) and select relevant accounts in the Party record, you are ready to make transactions against them. If party account currency is different from the Company currency, the system will restrict from making transactions with that party.
You need to change the currency to party currency in the transaction (Sales or Purchase Order/Invoice). If party account currency is the same as company currency, you can make transactions for that Party in any currency. But accounting entries (GL Entries) will always be in Party Account Currency.
> **Note**: Ensure that the correct account with currency is set in the 'Debit To' field when making invoices/payments.
You can change accounting currency in Party/Account record before you make any transactions against them. After making accounting entries, the system will not allow you to change the currency for both Party/Account records. In case of multi-company setup, the accounting currency of the party must be the same for all the companies.
### 2. Exchange Rates[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#2-exchange-rates)
When dealing with multiple currencies, ActiveBooks has the Currency Exchange page for managing exchange rates. It allows you to save the exchange rate quotes you require. To know more, visit the [Currency Exchange](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/currency-exchange) page.
For foreign currency transactions, ERPNext checks exchange rates from:
1. From the Currency Exchange for any matching record (if created by a User).
2. If this fails, ERPNext will attempt to get the current market exchange rate from [Frankfurter](https://www.frankfurter.app/).
3. **NOTE**: Starting from ERPNext version 13.10.0, Frankfurter is replaced by a new service called [exchangerate.host](https://exchangerate.host/).
4. If this still fails, then the exchange rate will have to be entered manually.
The rates in the Currency Exchange master are fetched based on whether 'Allow Stale Exchange Rate' is enabled in Accounts Settings. To know more, visit the [Accounts Settings](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/accounts-settings) page.
### 3. Transactions[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#3-transactions)
#### 3.1 Sales Invoice[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#31-sales-invoice)
In a Sales Invoice, transaction currency must be the same as the accounting currency of Customer if Customer's accounting currency is different from Company currency. Otherwise, you can select any currency in a Sales Invoice. On selection of Customer, system will fetch a Receivable account from Customer/Company. The Currency of the receivable account must be the same as the Customer's accounting currency.
Now, in Invoice, Paid Amount will be entered in transaction currency, instead of earlier Company Currency. Write Off Amount will also be entered in the transaction currency.
Outstanding Amount and Advance Amount will always be calculated and shown in Customer's Account Currency. The paid amounts will be reflected in the [Payment Entry](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/payment-entry):
#### 3.2 Purchase Invoice[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#32-purchase-invoice)
Similarly, in a Purchase Invoice, accounting entries will be made based on Supplier's accounting currency. Outstanding Amount and Advance Amount will also be shown in the supplier's accounting currency. Write Off Amount will now be entered in the transaction currency.
#### 3.3 Journal Entry[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#33-journal-entry)
In Journal Entry, you can make transactions in different currencies. There is a checkbox 'Multi Currency', to enable multi-currency entries. Only when 'Multi Currency' option selected, you will be able to select accounts which have different currencies.
In the Accounts table, on the selection of a foreign currency account, the system will show the Currency section and fetch Account Currency and Exchange Rate automatically. You can change/modify the Exchange Rate later manually. Debit/Credit amount should be entered in Account Currency, the system will calculate and show the Debit/Credit amount in Company Currency automatically.
### 4. Reports[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#4-reports)
#### 4.1 General Ledger[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#41-general-ledger)
In General Ledger, the system shows debit/credit amount in party currency **if filtered** by an Account and that Account Currency is different from Company Currency.
#### 4.2 Accounts Receivable/Payable[ ](https://docs.erpnext.com/docs/v13/user/manual/en/accounts/multi-currency-accounting#42-accounts-receivablepayable)
In Accounts Receivable/Payable report, the system shows all the amounts in Party/Account Currency.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://vezolve.gitbook.io/activebooks/accounts/introduction/advanced/multi-currency-accounting.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.