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invoice in foreign currency and difference on payment due to exchange rate
lsac
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lsac
Messages count : 2
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7 August 2016
Hi all,
I invoice my clients in their local currency. I convert the amount into sterling on the invoice for tax purpose only.
My clients pay in their local currency through Paypal. I convert it into sterling the day I receive the payment. Paypal's exchange rate is usually less advantageous than the one used on my invoice. Can I account this difference same as an expense for my accounting? Thanks for your replies.
I invoice my clients in their local currency. I convert the amount into sterling on the invoice for tax purpose only.
My clients pay in their local currency through Paypal. I convert it into sterling the day I receive the payment. Paypal's exchange rate is usually less advantageous than the one used on my invoice. Can I account this difference same as an expense for my accounting? Thanks for your replies.
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Dynamoaccounts
Messages count : 3Likes count : 0Registration : 16 August 2016Yes, profits or losses on exchange should be accounted for in the records and shown in the Profit & Loss account -
Lupita
Messages count : 207Likes count : 6Registration : 2 November 2006Isac,
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