Why do we need to use Base Currency Adjustments?

Base Currency Adjustments in Zoho ERP are used to handle exchange rate fluctuations when you have transactions in foreign currencies.

You need Base Currency Adjustments because:

• Exchange rates can change between the transaction date and the payment or report date.
• These fluctuations can cause differences in your base currency values.
• Base Currency Adjustments help account for gains or losses due to these rate changes.
• They ensure your financial reports remain accurate and compliant.

In short, Base Currency Adjustments help you keep your books accurate when dealing with multi-currency transactions

Also, you can have an insight on the profit or loss incurred due to the change in exchange rates and also can apply the changes to open transactions.