If you have Activated Multiple Currencies in Company Settings, you need to add the additional currencies in which you are going to transact and also specify exchange rates.
- To add a new currency, Go to Setup > Company Settings > Manage Currencies > Click on Manage Currencies Tab > New
- To specify exchange rates on different dates Go to Setup > Company Settings > Manage Currencies > enable Advanced Currency Management.
- Then specify date and exchange rates. Dated exchange rates have to be specified in home currency terms.
Illustration: If the exchange rate is 1 US $ = 70 Indian Rupees, you have to specify 70 as the exchange rate, if your base currency is US dollars. Or You have to specify 0.014 as the exchange rate, if your base currency is Indian Rupees.
Exchange rates can be updated whenever exchange rate have changed.