How do Exchange Rates work in the system?

In XoroERP system, you will have one home currency. This is the currency in which you will file your Tax Return. On top of that home currency, multiple foreign currencies are available to handle transactions with vendors/customers dealing in various currencies. To manage this, you can add the exchange rates for these foreign currencies using the "Add Exchange Rate" module.

Once a foreign currency is added here you have the option of creating accounts and transactions with that currency. In addition, every 4 hours the exchange rate for foreign currencies is updated from a live 3rd party API integration so that you will always have the latest rate.

When you open a module, for instance, the Sales Order module, and select a foreign customer the exchange rate field will automatically populate with the system rate (the system rate is shown above on the “Add Exchange Rate” module).

Adding Exchange Rate

You can add an exchange rate for any currency you plan to use for transactions. To add the exchange rate, you will begin by specifying the currency and then adding the current exchange rate in the system. After that, the rates will be automatically updated in the system.

To add the exchange rate, go to Menu > Utilities > Exchange Rate > Add Exchange Rate

In the Exchange Rates module, the home currency or base currency is displayed at the top.

Add Exchange Rate Fields

Field	Description
Select Currency	Select the currency for which you want to add the exchange rate from this dropdown option.
Rate	Enter the current value of the selected currency compared to your base currency.

After entering the details, click on "Add/Update".

The currency will be added to the section below, and now you can make transactions in the foreign currency.

Updating Exchange Rate manually

The exchange rate will be updated automatically in the system. However, you have the option to update the exchange rate manually. An app config, "Update Exchange Rate Manually" is available to facilitate this.

Turn on this app config to enable editing the exchange rate manually.

You may edit this rate (up to 5 decimal digits) if necessary for that particular transaction/order. If you do you will be prompted with a message similar to this:

This is essentially asking if you want the rate that you entered to become the new system-wide rate. Click OK if you do, otherwise, click Cancel if you don’t. If you click OK then anyone creating transactions/orders with that currency will by default retrieve your entered rate. Also, remember that your rate will be overwritten anyways within 4 hours.

Restricting exchange rate modification

You have the option to disable editing of the exchange rate on sales or purchase orders. There is an App Config, "Disable exchange rate modification" to disable changing/editing the Exchange rate on Sales Order and Purchase Order.

Click on the pencil icon, and select the module for which you want to disable the modification of the exchange rate.

Exchange rate modification will be disabled for the selected module. If "Sales" is selected then all sales modules will not allow users to update the exchange rates.

The setting will have an impact on the following modules under SO:

• Estimate

• Sales order

• Invoice

• Sales receipt

• Credit memo

• Invoice credit memo

• Refund receipt

The same is the case if "Purchase" is selected. The setting will have an impact on the following modules under PO:

• Purchase order

• Item receipt

• Bill Vendor credit

• Vendor prepayment

Note: The Page Default setting will override the setting defined under the App Config.