Set up currency
Go to Settings > Integrations and add a currency data source. You configure rates monthly.- Market rates
- Custom rates
Francis sources market rates automatically from the European Central Bank.
- Monthly closing rates: the rate the ECB published on the last business day of the month. This is the last trading day the ECB has data for, not necessarily the last calendar day.
- Monthly average rates: the simple average of all daily rates the ECB published that month, calculated as the sum of the daily rates divided by the number of days with data.
Conversion method
Francis applies a standard conversion approach:- P&L (income and expenses): translated at the monthly average rate, which approximates transaction-date rates.
- Balance sheet (assets, liabilities, and equity): translated at the monthly closing rate, which reflects the financial position at period end.
Current and historical rates
Francis translates opening balance sheet amounts at the current month’s closing rate. So balance sheet values can move on exchange rate shifts alone, even with no new journal entries.Show example
Show example
| Base currency | Jan 25 | Feb 25 | Mar 25 |
|---|---|---|---|
| Long-term loan, starting value | 0 | 5,000 | 5,500 |
| Long-term loan, delta | 5,000 | 500 | 200 |
| Long-term loan, ending value | 5,000 | 5,500 | 5,700 |
| Target currency | Jan 25 | Feb 25 | Mar 25 |
|---|---|---|---|
| Long-term loan, starting value | 0 | 5,250 | 6,235 |
| Exchange rate adjustment, starting value | 0 | 500 | 1,925 |
| Long-term loan, delta | 5,250 | 575 | 300 |
| Long-term loan, ending value | 5,250 | 6,235 | 8,550 |
| FX closing rate | 1.05 | 1.15 | 1.50 |
Average and closing rates
Francis translates P&L items at average monthly rates, while the matching balance sheet entries use closing rates. So the P&L and balance sheet can apply slightly different rates to the same underlying journal entries.Show example
Show example
| Profit and loss | Base currency | Rate | Target currency |
|---|---|---|---|
| Revenue | 10,000 | 10,500 | |
| Costs | -5,000 | -5,250 | |
| Net income | 5,000 | × 1.05 | 5,250 |
| Balance sheet | Base currency | Rate | Target currency |
|---|---|---|---|
| Retained earnings, starting value | 0 | 0 | |
| Retained earnings, delta | 5,000 | × 1.10 | 5,500 |
| Retained earnings, ending value | 5,000 | 5,500 | |
| FX average rate | 1.05 | ||
| FX closing rate | 1.10 |
The 5,500 difference in retained earnings breaks down into 5,250 (retained earnings at average rates) and 250 (the adjustment from average to closing rate).