Currencies & Forex

Advanced · 9 min · Money

Currencies & Forex keeps exchange rates, sets which customers and suppliers deal in a foreign currency, revalues open balances at month end and records exchange gain or loss.

Open this screen in Stockivio →

Currencies & Forex

Screen layout sketch — the screenshot will appear here once it is added.

Why and when you use it

If you export or import, an invoice in US dollars is worth a different number of rupees on the day you are paid. That difference is an exchange gain or loss, and it belongs in your books. This screen keeps rates, tags foreign-currency parties and works out the gain or loss so your accounts show the true rupee value. Accountants of exporters and importers use it; the accounting treatment should be confirmed with your CA.

Before you start

Know which customers and suppliers bill in foreign currency
A source for exchange rates you and your CA agree to use

Step by step

Open Currencies & ForexOpen 🏢 Stockivio ERP and choose 🌐 Currencies & Forex. It has the tabs Rates, Customers & suppliers, Month-end revaluation, Gain / loss history and Settings.
SettingsOpen Settings and set the options for your business before you start.
RatesOn Rates, enter the exchange rate for each currency and date you use, from the source you have agreed with your CA.
Customers & suppliersSet the currency for each foreign customer and supplier so their documents are recorded in that currency.
Record invoices and paymentsRaise invoices and record payments as usual. When a payment comes at a different rate from the invoice, the difference is a realised gain or loss.
Month-end revaluationAt month end, open Month-end revaluation to revalue unpaid foreign balances at the month-end rate. This shows unrealised gain or loss.
Review historyGain / loss history lists every gain or loss recorded, for your CA's review.

Worked example

Patel Engineering Works invoices a buyer in Dubai USD 10,000 on 5 Oct 2026 at ₹83.20 = ₹8,32,000. By 31 Oct the rate is ₹83.60. The buyer pays on 18 Nov 2026 at ₹84.00.

On Customers & suppliers, set the Dubai buyer's currency to USD.
On Rates, enter ₹83.20 for 5 Oct and ₹83.60 for 31 Oct.
On 31 Oct, run Month-end revaluation: the open USD 10,000 is now ₹8,36,000, an unrealised gain of ₹4,000.
On 18 Nov, record the payment at ₹84.00 = ₹8,40,000.
Gain / loss history shows the total gain of ₹8,000 against the original invoice value.

Result: The books show the true rupee value of the receivable at month end and the exchange gain when it was paid.

💡 Tips

Use one agreed rate source every time.
Run revaluation on the last day of each month, before closing.
Ask your CA how exchange differences should appear for tax.

⚠️ Common mistakes

Entering foreign invoices in rupees for a foreign-currency customer. Set the currency first.
Skipping month-end revaluation, so receivables are shown at old rates.

🎬 Video walkthrough (script — recording coming soon)

Scene 1: Open Currencies & Forex tabs.
Scene 2: Enter rates on Rates.
Scene 3: Set a customer to USD.
Scene 4: Month-end revaluation.
Scene 5: Gain / loss history.