Intermediate
How to set up multi currency support on Xero
Quick Answer
Multi currency support in Xero allows you to invoice customers and pay bills in different currencies. You can enable this feature in Settings and add specific currencies for your business transactions.
Prerequisites
- Active Xero subscription
- Organization administrator access
- Understanding of your base currency
- List of currencies you need to support
1
Access Organization Settings
Log into your Xero organization and click on Settings in the main menu. Then select General Settings from the dropdown menu to access your organization's configuration options.
Tip
Make sure you're logged in as an organization administrator to access these settings.
2
Navigate to Currency Settings
In the General Settings page, locate the Features section on the left sidebar. Click on Currencies to open the multi-currency configuration panel where you can manage all currency settings.
3
Enable Multi Currency Feature
On the Currencies page, you'll see a toggle switch labeled Multi-currency. Click the toggle to turn it ON. A confirmation dialog will appear explaining that this feature cannot be disabled once activated. Click Continue to proceed.
Tip
Consider carefully before enabling as this feature cannot be turned off once activated.
4
Add Required Currencies
Click the Add Currency button to open the currency selection dialog. Choose currencies from the dropdown list that includes major world currencies like USD, EUR, GBP, etc. Select each currency you need and click Add to include them in your organization.
Tip
Only add currencies you actually plan to use to keep your currency list manageable.
5
Set Exchange Rate Preferences
For each added currency, configure the exchange rate settings. You can choose between Automatic daily rates (updated by Xero) or Manual rates that you update yourself. Click Save after selecting your preferred option for each currency.
Tip
Automatic rates are convenient but review them regularly for accuracy, especially for large transactions.
6
Configure Default Currency for New Contacts
In the currency settings, set your preferred default currency for new customers and suppliers. This will be automatically assigned to new contacts unless you specify otherwise when creating them. Select from your enabled currencies using the dropdown menu.
7
Test Multi Currency Setup
Create a test invoice or bill to verify the multi-currency functionality. Go to Business > Invoices > New Invoice. Select a contact and notice the currency field now appears, allowing you to choose from your enabled currencies. The exchange rate will be displayed automatically.
Tip
Always test with a small amount first to ensure exchange rates and calculations are working correctly.
Troubleshooting
Multi-currency option is not visible in settings
Ensure you have administrator access and your Xero subscription plan supports multi-currency features. Some basic plans may not include this functionality.
Exchange rates are not updating automatically
Check your internet connection and verify that Automatic daily rates is selected in currency settings. You can also manually refresh rates by clicking Update Exchange Rates.
Currency not available in the dropdown list
Xero supports most major world currencies. If a specific currency isn't available, contact Xero support to request it be added to their system.
Existing transactions showing incorrect currency
Multi-currency only affects new transactions. Existing invoices and bills retain their original currency. You cannot convert historical transactions to different currencies.
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