Multi-Currency Setup: Single Customer & Single Bank Account for INR + USD Transactions

ERPNext Accounting
1

Hi everyone,

I am working with ERPNext (v15) and facing a challenge with multi-currency transactions.

:brain: Current Setup

  • Company base currency: INR

  • I need to create Sales Invoices in USD for some customers

:magnifying_glass_tilted_left: Current Approaches Tried

Option 1:

  • Set Customer default currency = USD

  • Create a separate Debtors account in USD

:check_mark: Works for USD invoices
:cross_mark: But requires maintaining separate Debtors accounts per currency

Option 2:

  • Keep Debtors account in INR

  • Enable multi-currency and manually change currency in Sales Invoice

:check_mark: Allows creating invoices in USD
:cross_mark: But creates inconsistency in payment flow

:warning: Main Problem

In Payment Entry:

  • Currency is derived from “Paid To / Paid From Account” (Bank/Account)

So:

  • If bank/account is INR → Payment Entry in INR

  • If bank/account is USD → Payment Entry in USD

:backhand_index_pointing_right: This forces me to:

  • Maintain multiple bank accounts (INR + USD)

  • Or adjust accounts per transaction

:red_question_mark: My Requirement

  • One Customer

  • Can transact in multiple currencies (INR + USD)

  • Use only ONE bank account

  • Handle payments cleanly without switching accounts

:thinking: Questions

  • What is the recommended way in ERPNext to handle:

    • Multi-currency customers

    • Without creating multiple Debtors accounts?

    • Without maintaining multiple bank accounts?

  • Is there a best practice using:

    • Exchange Gain/Loss handling?

    • Multi-currency accounting settings?

:bullseye: Goal

:backhand_index_pointing_right: Clean setup:

  • Single Customer

  • Multiple currencies supported

  • Single Bank Account for all Payment Entries

Any guidance or best practices would be greatly appreciated!

Thanks in advance :folded_hands:

2

Hi @Rangubha_Makwana

Please enable multi currency invoicing setup in accounts setting doctype.

3

image
image1180×657 78.6 KB

I have enabled multi-currency in ERPNext. When I create a Sales Invoice and change the currency from INR to USD using the price list, the invoice works correctly and gets submitted in USD.

However, when I create a Payment Entry from that submitted invoice, the paid amount is shown in INR. If I change the “Paid To” account to a USD currency account, then the amount is shown in USD.

My requirement is to use the same bank account (which is in INR) but still record or view the payment in USD.

4

@Rangubha_Makwana

In ERPNext:

  • Each Bank Account (GL Account) has a single account currency

  • Ledger entries are stored in:

    • Company currency

    • Account currency (fixed)

So if you try to use one bank account for USD + SAR + EUR:

  • Exchange gain/loss tracking becomes inconsistent

  • Bank reconciliation becomes unreliable

  • Audit trail breaks (you won’t match statements cleanly)

5

Thanks for the explanation.

I got a requirement to implement something similar to SAP ERP, where a single bank account (same Chart of Account) is used for both INR and USD payment entries.

In our case, we also want to use one bank account for multiple currencies in ERPNext, instead of creating separate accounts for each currency.

Is this possible ?