Updating journal entries currency rates automatically and manually
By default, your transactions, including journal entries, are conducted in your account’s currency, which is based on the country you selected when creating your account on the system. However, you can change the currency in a journal entry, allowing the entry to appear in a different currency while also displaying the same amount in the local currency based on the real-time global exchange rate or a manually set exchange rate.
Now, controlling and using exchange rates in journal entries has become easier. It is no longer limited to manually entering the exchange rate through the account settings; instead, you now have several options available directly from the journal entry screen, depending on the general account settings.
Let’s explore the details in the following lines.
Changing the Entry Currency Based on the Predefined Exchange Rate
The exchange rate of any currency in the system is either subject to the real-time global exchange rate or linked to an exchange rate you have manually added from the “Account Settings” dropdown under “Settings,” as shown in the following image.
To change the currency of a journal entry, simply navigate to the entry creation screen, click on the dropdown menu next to the currency field, and select the desired currency for the entry.
Once you save the entry, you will see the amount in the selected foreign currency within the journal entry screen, along with its equivalent in the local currency and the applied exchange rate.
For more details on how to manually change the exchange rate from account settings, refer to this guide.
Update Journal Entries Currency Rates setting
You can now directly view the exchange rate when selecting a currency from the journal entry screen. You can also manually adjust this rate within the same screen; however, keep in mind that this change will apply only once. If you want the manually entered rate to be used for all future entries, you can enable the button located below the exchange rate field in the journal entry instead of changing the manual rate in the “account settings.”. To make this button visible, it must first be activated in the “accounting settings.”.
To automatically update currency exchange rates for journal entries, click on “Account Settings” from the “Accounting” dropdown in the main menu, then click on the “General” card.
Activate the “Update Currency Exchange Rates for Journal Entries” button, then click the “Save” button.
When creating a new journal entry and selecting a currency different from the system’s default local currency, the current exchange rate will automatically appear. You can modify this exchange rate and manually enter the desired rate.
If you want the manually entered rate to be set as the default for all future journal entries, enable the “Update System Rate” option.
From then on, this journal entry and all new entries will follow the updated exchange rate as the default system rate.
