Multi-Currency

If your business operates across borders, multi-currency support is not optional -- it is essential. AI-native ERP handles multi-currency operations at every level: exchange rate management, currency conversion, transaction posting in foreign currencies, and the automatic gain/loss calculations that come with currency fluctuations.

Exchange Rate Management#

Exchange rates are stored with full metadata: source and target currency, rate value (with 10 decimal places for precision), effective date, rate type (spot, average, contract, or budget), and source (manual entry, ECB, Federal Reserve, or API). When you create a rate for EUR to USD, the system automatically creates the inverse (USD to EUR) so you never have incomplete rate pairs.

Rates are effective-date based, meaning you can maintain historical rates for any date. When a transaction is posted with a specific date, the system looks up the rate that was effective on that date. This ensures your financial statements use the correct rates for each period.

Automated Rate Sync#

You can sync exchange rates automatically from external sources. The ECB (European Central Bank) and US Treasury provide daily reference rates that the system can fetch on schedule. This eliminates the manual process of looking up and entering rates each day. You can sync the latest rates or backfill historical rates for a date range.

Currency Conversion#

The conversion tool lets you quickly convert any amount between currencies using the rates in your system. You specify the amount, source currency, target currency, and effective date, and the system returns the converted amount along with the rate used. This is useful for quick calculations, quote preparation, or verifying transaction amounts.

Multi-Currency Transactions#

When you post a transaction in a foreign currency, the system converts line amounts to your functional currency using the applicable exchange rate. The original foreign currency amount and the functional currency equivalent are both stored on the transaction, maintaining complete currency visibility.

Foreign exchange gains and losses arise when exchange rates change between the time a transaction is recorded and when it is settled. When you pay an AP invoice that was recorded at one rate and the payment clears at a different rate, the system calculates the difference and posts it as a foreign exchange gain or loss. This happens automatically during reconciliation, ensuring your currency exposure is properly reflected in your income statement.

Reporting in Multiple Currencies#

Financial reports are generated in your entity's functional currency, but the underlying transaction data preserves the original currency information. Consolidated reports across multi-currency entities handle translation from each entity's functional currency to the group reporting currency, following the appropriate accounting standards for current rate versus historical rate translation.