FAQ: How does Zudello handle different currencies?

Zudello supports processing transactions in multiple currencies. Here's how it works:

1. Transaction Currency: Each transaction document (Invoice, PO, Expense, etc.) has a currency field. This should reflect the currency the transaction was issued in (e.g., USD, EUR, GBP).

   • This currency is often set automatically based on the default currency configured for the linked Supplier or Customer record.
   • Users can manually change the currency on the document if needed.

2. Team Currency: Your Zudello team has a default Team Currency configured in Settings > Team Profile. This is typically your local operating currency (e.g., AUD, NZD, USD).

3. Exchange Rates: Zudello automatically fetches exchange rates (updated periodically, often hourly) from a financial data provider.

   • When a transaction's currency differs from the Team Currency, Zudello uses the date_issued field on the transaction to look up the historical exchange rate for that day between the transaction currency and the team currency.
   • If date_issued is missing or in the future, the latest available rate is used.

4. Local Amount Calculations: Zudello automatically calculates and stores local currency equivalents for key financial fields:

   • total_local = total * exchange_rate
   • total_exclusive_local = total_exclusive * exchange_rate
   • These _local values are crucial for consistent approval limit checks (DOA), budget evaluations, and reporting in your team's base currency.

5. Currency Conversion Feature: If the Currency Conversion Extension is enabled for a document type, users will see a component displaying the calculated local total and the applied exchange rate. They can also manually override the exchange rate directly on the document if needed.

In summary, Zudello allows you to record transactions in their original currency while automatically calculating local currency equivalents using fetched exchange rates for consistent internal processing and reporting.