What this article covers
Multi-currency in Finstack works at two levels: within a single entity (FX translation effect / CTA), and between entities that transact in different currencies (intercompany FX differences). This article covers how to configure multi-currency, which currencies are supported, how the CTA calculation works, and what your options are for dealing with intercompany FX differences.
For the broader intercompany elimination workflow, see Consolidation and intercompany eliminations: overview.
How do I configure multi-currency in Finstack?
Multi-currency is available only for users managing multiple currencies.
Go to Setup → Admin → Multi-Currency.
Choose your reporting currency (e.g., Euros). Other currencies (e.g., USD) will be converted automatically.
Select a conversion method:
Fixed Rates Method — enter one rate for all months. Ideal for minimal currency fluctuations or fixed-rate scenarios.
Equity Method — uses the Average Rate for P&L accounts and the Closing Rate for Balance Sheet accounts. Rates are updated automatically each month via exchangerate.host.
Custom FX rates — manually adjust average or closing rates to align with your ERP or specific reporting needs. Updates are reflected instantly in P&L and Balance Sheet accounts.
Click Save Changes.
Notes
The Equity Method automatically adds an FX translation effect line on the Balance Sheet, capturing the CTA (Cumulative Translation Adjustment) — see How does the CTA calculation work? below.
Automatic rates reflect monthly fluctuations in real time across all financial statements.
FX rates integrate seamlessly with IC eliminations, reconciliations, and sub-consolidations.
Which currencies does Finstack support?
The following currencies are available out of the box. To request a currency that isn't on the list, ask for a human agent in the chat — we can typically add a new currency the same day.
AED — United Arab Emirates Dirham
AUD — Australian Dollar
CAD — Canadian Dollar
CHF — Swiss Franc
CNY — Chinese Yuan
CZK — Czech Koruna
DKK — Danish Krone
EUR — Euro
GBP — Pound Sterling
GHS — Ghanaian Cedi
HKD — Hong Kong Dollar
ISK — Icelandic Krona
JPY — Japanese Yen
KES — Kenyan Shilling
PLN — Polish Zloty
RON — Romanian Leu
SEK — Swedish Krona
SGD — Singapore Dollar
TWD — New Taiwan Dollar
UGX — Ugandan Shilling
USD — US Dollar
XOF — West African CFA Franc
ZAR — South African Rand
How does the CTA calculation work?
When you choose the Equity Method, Finstack automatically adds a system-generated class to your Balance Sheet structure called the FX translation effect — this captures the CTA (Cumulative Translation Adjustment). The class keeps the balance sheet in balance as exchange rates shift over time.
The CTA is calculated as the monthly difference between the average and closing rate, multiplied with the P&L transactions in entities that report in a foreign currency. You can find a worked example in the attached spreadsheet (downloadable from the original Help Center article).
You do not need to configure this manually — Finstack generates the class and posts the effect automatically.
How does Finstack handle intercompany FX differences?
When entity A invoices entity B and the two entities report in different currencies, the same invoice is recorded in a different currency in each administration. Over time, exchange-rate shifts cause the two sides to drift apart in the common reporting currency (e.g., EUR equivalent).
When you eliminate the IC accounts on both sides, a residual difference appears. This intercompany FX difference is captured on the system-generated 0000 [IC difference] accounts — the same closing accounts used for all elimination residuals.
The IC FX difference self-resolves once the underlying invoice is settled. Until then, the residual sits on the [IC difference] accounts.
How can I deal with intercompany FX differences?
An intercompany FX difference arises between two entities: entity A and entity B record the same IC transaction in different currencies, and exchange-rate shifts cause the two sides to drift apart in the reporting currency. This is different from the FX translation effect (the CTA), which only captures the FX effect within a single entity — caused by the P&L and Balance Sheet being translated at slightly different rates.
No action is needed: when both sides are eliminated, the residual IC FX difference simply lands in the Elimination reserve on the Balance Sheet (via the 0000 [IC difference] GLAs), and it resolves automatically once the underlying invoice is settled. On accounts created from 1 August 2026, the Elimination reserve sits under Equity → Other equity, next to the FX translation effect line — so both FX effects are visible side by side. Older accounts can have this setup enabled on request: ask for a human agent in the chat.
If you want your interim reports clean of historic IC FX noise before settlement, you can clear the residual with a Manual IC entry (Finance → Intercompany → Manual IC entry) — directly in Finstack, without touching your ERP. See Manual IC entry.
Do you have an example calculation?
Yes - see here for an example calculation of the FX translation effect: example FX calculation.xlsx