Currencies

The Currencies section in Zoho ERP, allows you to manage all currencies used across your organization. This includes defining your base currency, enabling foreign currencies, managing exchange rates, and ensuring regional tax compliance.

The currency configuration that you’ve set in Zoho ERP directly impacts:

• Transactions across all modules
• Financial reporting
• Storefront pricing
• Tax and compliance

To access and manage the currency settings for your organization:

• Go to Settings.

• Navigate to the Organization Settings section, and select Currencies under Setup & Configurations.

• In the Currencies page, you can perform the following actions:

  • View the list of all enabled currencies along with their exchange rates.
  • Add new currencies to your organization.
  • Edit exchange rates for existing currencies.
  • View the base currency for your organization.
  • Enable automatic exchange rate updates using live feeds.

Base Currency of Your Organization

The base currency is the primary currency in which your organization’s financial transactions are recorded and reported. It serves as the default currency for all modules and transactions within Zoho ERP. In the Currencies page, the base currency is indicated with a label next to its name.

During the initial setup of your organization in Zoho ERP, you can select a base currency that aligns with your business operations and regional requirements. Once set, the base currency cannot be changed, so it’s important to choose it carefully and wisely. You can, however, enable additional foreign currencies to facilitate multi-currency transactions.

Add and Manage Other Currencies

In addition to the base currency, you can enable multiple foreign currencies in Zoho ERP to facilitate international transactions. To transact in a foreign currency, you must add it first. Here’s how you can add a new currency to your organization:

• Go to Settings.
• Navigate to the Organization Settings section, and select Currencies under Setup & Configurations.
• In the Currencies page, select + New Currency.
• In the pop-up that appears, fill the following details:
  • Currency Code: Enter or select the three-letter ISO code for the currency (e.g., USD for US Dollar, EUR for Euro). Upon selecting the currency code, the system will automatically populate the Currency Symbol and Currency Name.
  • Currency Symbol The appropriate symbol for the currency will be auto-filled based on the selected currency code (e.g., $ for USD, € for EUR).
  • Currency Name: The full name of the currency will be auto-filled based on the selected currency code (e.g., US Dollar for USD, Euro for EUR).
  • Decimal Places: Choose the number of decimal places to be used for this currency (e.g., 2 for USD, 0 for JPY). The supported values are 0, 2, and 3. However, please note that INR must always have exactly 2 decimal places to comply with regulatory standards.
  • Format: Select the format in which the currency should be displayed (e.g., $1,234,567 or 1 234 567 €).
  • Rounding Method: Choose the method for rounding off currency values (e.g., Round Off, Round Up, Round Down).
• Click Save to add the new currency to your organization.

The newly added currency will now appear in the list of enabled currencies, and you can set its exchange rate relative to the base currency.

Delete a Foreign Currency

If you no longer need a foreign currency, you can delete it from your organization. But you must ensure that there are no transactions recorded in that currency before deletion. To delete a foreign currency:

• Go to Settings.
• Navigate to the Organization Settings section, and select Currencies under Setup & Configurations.
• In the Currencies page, navigate to the currency you want to delete.
• Click the Delete icon next to the preferred currency, and confirm the deletion in the pop-up that appears.

Configure Exchange Rates

Exchange rates determine the value of one currency in relation to another. In Zoho ERP, you can manually set exchange rates for each foreign currency or enable automatic updates using live exchange rate feeds. Zoho ERP automatically fetches exchange rates from Open Exchange Rates, a trusted global exchange rate provider. These rates are intended for general accounting purposes.

Enable or Disable Exchange Rate Feeds

By default, Exchange Rate Feeds are enabled for all currencies, ensuring that your exchange rates are always up-to-date. However, you can prefer to disable the automatic updates and manually set the exchange rates. Here’s how you can enable or disable exchange rate feeds:

• Go to Settings.
• Navigate to the Organization Settings section, and select Currencies under Setup & Configurations.
• In the Currencies page, click the Disable Exchange Rate Feeds option to stop automatic updates. To re-enable the feeds, click the Enable Exchange Rate Feeds option.

Set up Exchange Rates Manually

If you’ve disabled the exchange rate feeds, you can manually set the exchange rates for each foreign currency. Here’s how you can do it:

• Go to Settings.
• Navigate to the Organization Settings section, and select Currencies under Setup & Configurations.
• In the Currencies page, navigate to the currency for which you want to set the exchange rate.
• Click the Edit option next to the preferred currency, and select Add Exchange Rate. In the pop-up that appears, enter the Exchange Rate relative to the base currency and also specify the effective Date for the rate.
• Click Save to apply the changes.

The manually set exchange rate will now be used for all transactions involving that currency. You can view the exchange rate history by clicking on the View Exchange Rates option next to the currency.