FX — Q&A
Q: How does Fincelo handle USD-denominated invoices for Indian companies? Step 1 — Invoice created in USD with the rate on the invoice date (RBI reference rate or manually entered rate). Step 2 — INR equivalent recorded at invoice date rate. This is the revenue amount. Step 3 — On payment: actual INR received recorded. Step 4 — FX gain/loss = INR received − INR at invoice date rate. Step 5 — Gain/loss posted to Other Income / Finance Costs. NOT to revenue. Revenue is always locked at invoice date FX rate.
Q: What is the FX hedging signal from the Smart Billing Agent? When USD receivables exceed a configurable threshold (default ₹50L), the Smart Billing Agent flags it and suggests considering a forward contract or natural hedge. This is a Level 2 enhancement (roadmap). Current build shows the exposure without the hedge recommendation.