What this article covers
Multi-currency in Finstack works at two levels: within a single entity (Cumulative Translation Adjustment / 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 a CTA (Cumulative Translation Adjustment) line on the Balance Sheet — 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, reach out via the chat interface within Finstack — 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 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?
Two options, depending on how visible you want the residual to be in your Balance Sheet.
Option 1: Manual IC entry
Use a Manual IC entry (Finance → Intercompany → Manual IC entry) to clear a historic FX-related IC difference directly in Finstack — without touching your ERP. Useful when you want your interim reports clean of IC FX noise. See Manual IC entry.
Option 2: Pragmatic grouping
Group both FX residuals (intra-entity translation + inter-entity IC FX) under a single Equity heading on the Balance Sheet, so the impact of multi-currency reporting is visible at a glance:
Go to Setup → Structure and open the Balance Sheet.
Under Equity, create a new class — e.g., Intercompany and FX effects.
Create a subclass under it called IC differences. Then in Setup → Mapping, map the 0000 [IC difference] GLAs to this subclass.
Drag the existing system-generated FX translation effects class into the same parent as a second subclass.
Both FX-related residuals now live under one Balance Sheet line.
Do you have an example calculation?
Yes - see here for an example calculation of the FX translation effect: example FX calculation.xlsx