Here’s how to do it: 

1. Enable Multiple Currencies: 

  • Log in to Xero. 
  • Go to “Settings” and click on “Currencies” (available for premium plans). 
  • Select “Enable Multiple Currencies” to activate the feature. 

 

2. Set Up Foreign Currencies: 

  • In the “Currencies” section, click “Add Currency” to add the currencies you’ll be working with. 
  • Xero will automatically fetch daily exchange rates for the currencies you add. 

 

3. Invoicing in Foreign Currencies: 

  • When creating an invoice, select the appropriate foreign currency from the currency drop-down. 
  • Xero will automatically calculate the exchange rate for the date of the transaction. 

 

4. Paying in Foreign Currencies: 

  • When recording payments to suppliers, select the relevant currency. 
  • Xero will convert the amount using the applicable exchange rate, and it will adjust your financial reports accordingly. 

 

By enabling multiple currencies, Xero simplifies foreign transactions, making it easy to invoice and pay in different currencies while keeping your records accurate.