Impact of exchange rates (FX)

This article presents how Fincome takes into account the impact of exchange rates (FX) in your subscriptions and reporting, and explains how to read the displayed variations.

TL;DR

• Conversion on invoice date : each line (invoice or credit note) is converted into your reporting currency at the ECB rate published on the issue date;

• Monthly subscriptions : a new rate applies each cycle, so MRR varies with the foreign exchange market;

• Annual subscriptions : a single rate for the whole period, so MRR remains stable month to month;

• In the Movementsview, Fincome shows a drawer FX effect that isolates this currency variation.

How Fincome converts your amounts

• Fincome retrieves the daily EUR/XXX fixing from the European Central Bank (publication 4:00 PM CET).

• When an invoice is synchronized, the original amount is converted at the invoice date rate and stored.

• The recognized MRR (or ARR) uses this converted amount.

🗒 Immediate consequence :

• a subscription billed monthly “takes” the rate of the current month;

• a subscription billed once a year remains fixed at the rate on the annual invoice date.

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Exchange rate effect on MRR curves

The tab "1. FX effect" of the sample file illustrates the following case:

Assumption	Value
2 subscriptions denominated in USD	$100 billed monthly + $100 billed annually
Reporting currency	EUR
EUR/USD end Jan-24	1,07
EUR/USD end Mar-24	1,15

Impact visible in Fincome:

Month	Total MRR (USD)	Monthly MRR (EUR)	Annual MRR (EUR)	Total MRR (EUR)
Jan-24	200 $	€93.46	€93.46	€186.92
Mar-24	200 $	€86.96	€93.46	€180.41
Difference (FX)	—	-€6.50	€0.00	-€6.50

👉 The MRR curve in euros dips by €6.50, even though nothing changed on the customer side: this is 100% due to FX.

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Movements view: where does the FX effect appear?

For each month, Fincome calculates:

• New / Expansion / Contraction : “business” variation converted at the invoice date rate;

• FX effect : variation purely due to the rate difference between the start and end of the period;

• Churn : MRR lost.

Equation always true :

$$ΔMRR total=BusinessImpact±FXeffect±Churn$$

Simplified formula of the FX effect : If the MRR in the original currency remains constant ($100 in the example):

$$FX(€)=100×(1tauxmois−1−1tauxmois)FX(€)=100×(tauxmois−1​1​−tauxmois​1​)$$

Example January → February 2024 :

$$100×(1/1,07–1/1,12)=–4,17€100×(1/1,07–1/1,12)=–4,17€$$

Frequently asked questions

Question	Short answer
Can I change the reporting currency?	Yes, section Settings › Reporting currency.
Where to see the rate applied?	In all detailed exports, column fx_rate_applied.
How to neutralize FX for a board?	Express the metric and subtract the column fx_effect. An "FX neutralized" button is planned soon.
Need help?	Write to us at [email protected] or open the in-app chat.