You invoice a US client USD 1,000 in March and another USD 1,000 in September, and the dollar moves between the two.
Until this week Financica converted both at the rate on the day you opened the report, so your March invoice was restated at a September rate. Several things followed from that, and all of them are fixed now.
Every figure converts at the rate of its own date
A cost incurred in August is worth what August's rate said. Financica now applies that to every report and every account: balance sheet, income statement, trial balance, tax figures.
When the balance sheet used one rate and the income statement used another, the two sides of your balance sheet disagreed by exactly the difference. On one real set of books it was €18 on €8,745, with a warning banner saying transactions were unbalanced or accounts miscoded. Neither was true. Nothing was wrong with the bookkeeping; the report was valuing the two halves on different bases.
Converting everything the same way closes that gap. There is no plug and no adjustment line.
Foreign currency legs reach the trial balance
The trial balance used to filter out every leg that was not already in your reporting currency. A USD cost in a EUR company simply did not appear, and both columns still added up.
Foreign currency legs are now converted and included.
Foreign currency invoices reach your VAT return
If you invoiced in anything other than your filing currency, those invoices were excluded from the VAT grid entirely. A company billing in USD could not produce a return it could actually file.
They are now converted at the reference rate for the date the VAT became chargeable, which is the date the journal entry carries. If a currency has no reference rate at all, the affected invoices are listed as excluded with their totals, so you can see exactly what was left out before you file rather than after.
Bringing open balances up to current value
Converting at each entry's own date leaves one thing undone. A dollar balance you still hold is carried at what it was worth when it arrived. If you are holding USD 30,000 of unpaid invoices and the euro has moved 5%, that is about €1,500 of gain or loss sitting in your accounts with nothing to match it.
Foreign currency revaluation is now on the year-end close. Preview it and you get one row per foreign balance: what you hold, what it is carried at, what it is worth now, and the difference.
A few things worth noting:
- Nothing is written until you post it, and undo restores the previous values exactly.
- Only balances you will settle in cash are revalued: bank accounts, receivables, payables, loans. A foreign currency fixed asset keeps its original value.
- Running it again later works out what is already recorded and posts only the remaining difference, so a second run does not double count.
- The entry posts in your reporting currency against your translation difference accounts, leaving the foreign balance itself untouched. In a Belgian chart that is 6550 and 7550, which the PCMN keeps separate from the 6540 and 7540 used for differences realized on settlement. Merging the two would overstate what you have actually realized.
- Where a country's rules say an unrealized gain should not be booked, Financica leaves it out and says so on the preview row. Belgium is one of those. The loss side is always recorded.
Rates
Reference rates come from the European Central Bank, are stored once, and are never re-fetched, so a report run twice gives the same answer. A handful of currencies have no ECB reference rate. Financica does not guess one: those amounts stay in their own currency and the report names the currency it could not convert.
Limits
- Revaluation currently identifies which balances to revalue from Belgian and Luxembourgish chart structures. On a US, UK or Dutch chart it finds nothing and does no harm, but it does not yet do the work either. That is next.
- Nothing forces you to run the revaluation before signing off a year. It is a button on the close, not a check that blocks it.
- Filed figures are recomputed rather than stored. Because reference rates never change once published, the numbers are stable, but there is not yet a record of what you filed and at what rate.
Available now on the balance sheet, income statement, trial balance, VAT return and year-end close.