Some investments may be received in foreign currencies (different from the company's base currency). For these transactions, Ledgy allows you to specify the currency and exchange rate.
Currency conversion is available for the following transaction types:
- Convertible loans
- Dividends/ Payouts / Exercising
You can change the currency of the transactions and add an exchange rate by editing the transaction.
Adding or editing a transaction's currency
Once inside the window that appears when adding or editing one of the above transactions, you can go to the "Currency" field, select a currency from the dropdown list, or type the currency's 3 letter code to find it.
Once you have selected a currency, an exchange rate field will appear. Fill it in with the conversion rate you would like to use between the transaction's currency and your company's base currency
Note: After selecting the currency for the transaction, the input field of the transaction will show the currency you selected, with the total amount written below. Under the exchange rate field, you will see the total amount in the original currency.
Confirm by clicking Save
Let's say you want to record an issuance of shares with an investment of 500 000 EUR for a company with GBP as a base currency. To record this you can go to Ownership > Transactions > Add Transaction > Issue Shares and when the window appears, the "Issue Price" will be in GBP. This can be changed by selecting EUR as a Currency from the drop-down menu, as well as the exchange rate of your choice that appears right next to the "Currency" field (for example 0.9). Then you would see the original investment of 500,000.00 euros in the "Total in EUR" written below the "Issue price", whereas the total in the base currency of GBP will be written under the "Exchange rate" field (in this case 500,000.00 x 0.9 = 450,000.00).
For transactions such as the payback of a convertible loan, or the exercising of a grant, you are also able to define which is the specific exchange rate you wish to apply at the time of the payback or exercising according to the strike price or investment currency previously defined in the grant or convertible loan (example on the screenshot below for exercising, with a grant that has a strike price in EUR and the base currency of the company is GBP).