Resolving the Multi-Currency Error in ERPNext Invoices

Introduction:

If you are encountering the error message shown below when creating an invoice in ERPNext, this guide will help you resolve it.

Error Message Screenshot:

The error message reads:

"Party Account 1310 - Debtors - PL currency (GHS) and document currency (USD) should be the same."

This error occurs when the currency of the party account and the document currency do not match, and the multi-currency functionality is not enabled. By default, ERPNext does not allow multi-currency invoices against a single party account.

Reason for the Error:

ERPNext's accounting system restricts creating invoices where the party account and document currency are different unless the multi-currency option is explicitly enabled.

In cases where you need to invoice customers in different currencies (e.g., your party account uses GHS, but the invoice is in USD), this setting must be turned on in the Account Settings.

How to Resolve the Error:

To resolve this issue and allow invoices in different currencies, follow these steps:

1. Navigate to Account Settings:
2. From the ERPNext dashboard, go to Accounting > Accounts Settings.
3. Enable Multi-Currency Invoices for Single Party Account:
4. In the Account Settings page, under the Invoicing Features section, locate the option Allow multi-currency invoices against single party account.
5. Check the checkbox to enable this feature.
6. Screenshot 1:

1. Here, you will find the option to enable multi-currency for single party accounts.
2. Save Changes:
3. Once you’ve enabled the multi-currency option, ensure to Save your changes.

Why This Happens:

ERPNext, by default, expects the currency of the party account and the invoice to match. For use cases where this is not the case (e.g., issuing invoices in a foreign currency), the multi-currency functionality must be enabled to avoid conflicts.

Conclusion:

By enabling the multi-currency invoices feature for single party accounts, ERPNext allows you to create and manage invoices in different currencies while keeping the party account in a single base currency ledger. This is essential for businesses operating in multiple countries or those dealing with foreign clients.