On Sat, Mar 28, 2020 at 1:00 AM Taylor R Campbell
<[email protected]> wrote:
>
> Say I'm a US entity with USD as my reporting currency, but I order
> widgets from a Japanese supplier and receive an invoice in JPY; later
> I pay via wire transfer at a bank that does the JPY/USD exchange for
> me. How can I correctly report the cost of the widgets separately
> from the foreign currency exchange loss/gain?
>
Maybe my approach is too simple (I'm a huge fan of the KISS principle)
but this is what I do.
date.in.my.format Widget Selling Company
; items booked as xxxx.xx gizmo currency
; # of items (if multiple I use multiple lines here)
(This to allow cost per part breakdown if desired.)
Expense: widget a: my account code $
cost in my currency
Repeat as necessary
Asset:entity providing payment: my account code $ -cost in
my currency
date.in,my.format Entity doing currency exchange/transmission
; noting an fees for transmission
; exchange rate used
; amount in the paid currency
Expense: fees for exchange: my account code $ cost in my currency
Expense: monies exchanged: my account code $ cost in my currency
Expense: fees for transmission: my account code $ cost in my currency
Asset: wherever I pulled the funds from: my account code $
-cost in my currency
I do have a VERY long and VERY detailed list of account codes (with
explanations).
This way I track every part and cost of the transaction.
Likely not terribly elegant but its accurate AND it works and, imo,
easy to follow.
Regards
--
---
You received this message because you are subscribed to the Google Groups
"Ledger" group.
To unsubscribe from this group and stop receiving emails from it, send an email
to [email protected].
To view this discussion on the web visit
https://groups.google.com/d/msgid/ledger-cli/CAPpdf58hbh%2BfdESWpOfhuO5ti50Ro8xn29H8CLCPuK1KvFsOPA%40mail.gmail.com.
