Many organisations don’t just operate within one country, they operate internationally. It is obvious that situations will come up where payments are made or transactions are conducted in a currency different from the organisation’s local currency. Here, multi-currency accounting comes into play.

Keeping a clear record of multi-currency transactions is important since exchange rates fluctuate every single day and maintaining correct exchange rates and amounts helps accounting or closing books at the end of an accounting period easier.

In ERPNext, you can make accounting entries and transactions in multiple currencies and collate them to the local currency. ERPNext allows you to create ledgers in multiple currencies, convert transactions using exchange rates, record gain or losses as well and also enables exchange rate revaluations.