As have seen, it is quite easy to configure Odoo for multiple languages. Currencies, however, will require more planning and testing during system configuration. Unlike languages, multiple currencies have the ability to directly modify the amount of money you are receiving or paying out. If the system has misconfigured currency settings, you are almost guaranteed to have inaccurate transactions within your system at some point. Make sure that you thoroughly test all scenarios when working with multiple currencies in Odoo or any other ERP system.

To set up multi-currency in Odoo, go to the Accounting menu and select Settings in the Configuration section, as shown in the following screenshot:

Under Currencies, you will find Multi-Currencies. Check this and you will get the option to select the accounts to which the differences between exchange rates are posted. When setting up a full production system, you will want to assign appropriate accounts, as discussed in Chapter 6, Configuring Accounting and Finance Options, we can post to the default account, Exchange Difference, as an appropriately-typed income or expense account for demonstration purposes.

After clicking on Multi-Currencies, the screen will refresh and give you the option to Activate Other Currencies. Clicking this option will bring up all the currencies that are available in your Odoo installation:

When you turn on Multi-Currency, Odoo specifies that both the USD and EUR currencies are active. You can activate any other currency by editing the appropriate record and checking the Active option.

Let's go ahead and activate the currency for the Mexican Peso by finding the MNX currency record and setting it to Active, as shown in the following screenshot:

You will notice that this screen also contains the option to specify the rounding factor that will be used in converting the MXN currency to the base Odoo currency. In this installation, that is the US currency.

You will not notice the changes from multi-currency until we look at how some of our documents now appear in Odoo.