> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincelo.app/llms.txt
> Use this file to discover all available pages before exploring further.

# FX Treatment & Multi-Currency

> Foreign currency invoicing, FX gain/loss treatment, and multi-currency support.

### FX — Q\&A

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**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.

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**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.

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