Currencies
In Zoho Books, you have the option of creating sales and purchase transactions for your contacts in various currencies other than your base currency.
In this page…
- Base Currency
- New Currency
- Edit Currency
- Exchange Rates in the UAE
- Add Exchange Rates
- Disable Exchange Rate Feeds
- Delete Currency
- Use Cases
Base Currency
The default currency of your organization is determined by the business location that you select while setting up your organization. This currency is called your base currency. For example, if you have selected your business location as U.S.A. then the default currency will be dollars.
To view the base currency of your organization:
- Go to Settings > Currencies.
Apart from the base currency, Zoho Books contains a default list of other currencies as well. Want to add a new currency apart from the ones displayed? Learn how to create a new currency.
New Currency
By default, Zoho Books has a list of available currencies in your organization. To view these currencies:
- Go to Settings > Currencies.
If the currency that you want to add is not present in the list of default currencies, you can add the currency from the list of various currencies available around the world.
To add a new currency:
- Go to Settings > Currencies.
- Click the + New Currency button in the top right corner of the page.
| Fields | Description |
|---|---|
| Currency Code | Select the currency you want to add. |
| Currency Symbol | The currency symbol is generated based on the currency you select. However, you can change this symbol if you wish. |
| Decimal Places | Select the number of decimal places. |
| Format | Select the places where the commas(,) and dots(.) appear in your currency. |
- Click Save.
After saving the new currency, it will show up in the list of currencies available in your organization. It can be assigned to your customers in Zoho Books with whom you transact.
Edit Currency
The default currencies in Zoho Books have certain properties like the currency symbol, the number of decimal places and the format of the currency. You can choose to edit these fields and make them unique to your organization.
To edit a currency:
- Go to Settings > Currencies.
- Hover over the currency you want to edit.
- Click Edit on the right side of the currency.
- Make the necessary changes.
| Fields | Description |
|---|---|
| Currency Code | Select the currency you want to add. |
| Currency Symbol | The currency symbol is generated based on the currency you select. However, you can change this symbol if you wish. |
| Decimal Places | Select the number of decimal places. |
| Format | Select the places where the commas(,) and dots(.) appear in your currency. |
- Click Save.
Exchange Rates in the UAE
An exchange rate refers to the rate of exchange between the base currency and any other currency.
Transactions in foreign currencies need to be converted into the base currency (AED) in Zoho Books for the purpose of accounting.
As per the FTA, you need to use the exchange rates provided by the Central Bank of UAE website. Different days could have different exchange rates.
To get the exchange rates for any particular day, you would have to:
- Go to the Central Bank of UAE website.
- Select the Date on which you want to view the exchange rates.
- These rates in the website are updated from Monday to Friday at the UAE local time 6 PM. If the specific market is closed due to a local holiday, the exchange rate on the previous day (updated at 6 PM) is taken into account.
You can also view a consolidated list of all the exchange rates for all the days in a month in the PDF or XLS format. Here’s how:
- Go to the Central Bank of UAE website.
- Select either the PDF or the XLS format for any month of your choice.
Add Exchange Rates
As per the FTA, exchange rates need to be calculated based on rates given in the Central Bank of UAE website. These rates will help in accurate calculation of currency gain or loss.
You can manually add exchange rates for a currency with respect to the base currency for any particular day. Here’s how:
- Go to Settings > Currencies.
- Hover over the currency for which you want to add an exchange rate.
- Click View Exchange Rates to the right of the currency.
- Click + Add Exchange Rates in the top right corner of the page.
- Enter the exchange rate for the particular day. For example, let’s say the exchange rate on Jan 17th, 2019 for CZK is 0.016 (i.e. 1 CZK = AED 0.016).
- Click Save.
All the exchange rates you save for different dates can be viewed in Zoho Books. Here’s how:
- Go to Settings > Currencies.
- Hover over the currency for which you want to view the exchange rate(s).
- Click View Exchange Rates.
You can delete any exchange rate by hovering over it and clicking the Trash icon to the right of the exchange rate.
Delete Currency
Zoho Books contains a list of currencies for your organization other than the base currency. You can choose to delete any of these currencies if you wish.
To delete a currency:
- Go to Settings > Currencies.
- Hover over the currency you want to delete.
- Click the Trash icon to the right side of the currency.
- Click OK to confirm.
Note:
You cannot delete the base currency.
Use Cases
So when are currencies used in Zoho Books? When will exchange rate feeds come into play?
Here are two instances where currencies will be applicable:
Contacts
Currencies will come into play when you have a contact with whom you transact in a different currency (other than the base currency). Let’s say you have an overseas customer with whom you transact in their foreign currency. So, when you create an invoice for the customer, the amount should be in the foreign currency. To implement this, you have to select the appropriate currency for any contact while creating or editing them under the Other Details section.
When this is done, every time you create a transaction for a contact, the amount will be displayed in the respective foreign currency.
However, for your organization, the accounting will be done in the base currency by converting the foreign currency to the base currency based on the exchange rate feeds on that day.
Transactions
Currencies will be used in transactions for contacts who have been assigned different currencies. Let’s say you have a customer with whom you transact in a foreign currency. When you create an invoice for this customer, the amount in the invoice will be displayed in the currency you have assigned to the particular contact.
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