Currency fluctuations in Finmap

🔍 What are currency fluctuations?

Currency fluctuations (or exchange rate difference) refer to profit or loss that arises from changes in the exchange rate between the moment of receiving or spending funds in foreign currency and the accounting rate used in financial reporting. In Finmap, this is reflected in the Cash Flow report.

Currency fluctuations can be positive (profit) or negative (loss).

How is the exchange rate difference calculated in Finmap?

In Finmap, the formula is as follows:

End-of-month balance (calendar-based) – Start-of-month balance (calendar-based) – Net cash flow (Free Cash Flow) – Account starting balance
= Exchange rate difference




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📊 Calculation examples
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✅ Positive exchange rate difference

Company in UAH, deposit of $10,000 at an exchange rate of 40

• Exchange rate at month-end: 41.4
• Ending balance: 414,000 UAH (10,000 × 41.4)
• Starting account balance: 0
• Net cash flow: 400,000 UAH (10,000 × 40)
• Result: 414,000 − 0 − 400,000 − 0 = 14,000 UAH

📈 Exchange rate difference = +14,000 UAH

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❌ Negative exchange rate difference

Company in UAH, deposit of $10,000 at an exchange rate of 43

• Exchange rate at the end of the month: 41.4
• Ending balance: 414,000
• Net cash flow: 430,000 (10,000 × 43)
• Result: 414,000 – 0 – 430,000 = –16,000 UAH

📉 Exchange rate difference = –16,000 UAH

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⚙️ Calculation specifics

• Exchange rate difference is not applied to cryptocurrencies
• The starting account balance is applied to the month when the account was created, unless the first transaction is dated earlier:
  • Account created in March, first transaction in February → balance applies to February
  • Account created in March, first transaction in April → balance applies to March

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🔁 Accounting for internal transfers

In the Cash Flow report, exchange rate difference may also reflect internal transfers using the same logic:

Example:
You add an income of $9,000 → then transfer $9,000 to another account
In the first account’s report, you’ll see:

• Income: +9,000
• Transfer: –9,000
• Exchange rate difference: depends on the rate

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📌 Additional important notes

• If you filter data by one or more accounts, all calculations (starting balance, ending balance, exchange rate difference) are limited to the selected accounts only.
• Balances and exchange rate differences are always displayed at the start and end of the month, regardless of the selected date range in the filter.