Foreign Currency Gain or Loss

Sometimes you might sell (or buy) products or services in a foreign currency that differs to your base currency (base currency is set when you select a zone for your Saasu file).

In such circumstances you may receive slightly more or less funds than invoiced because of exchange rate (FX) differences. For example, you receive AUD113 for a sale that was USD100, $13 being an exchange rate gain.

  1. Saasu will automatically set up the following accounts once your transaction is finalised (tax invoice):
    • Income:Foreign Currency Gain – applicable to Sales
    • Expense:Foreign Currency Loss – applicable to Purchases
  2. Speak to your accounting advisor to establish what you need for your particular circumstances. In some situations the Account might need to be updated to Expense: Foreign Currency Gain/Loss (example only)
  3. Apply a USD100 payment to the sale using the Asset:’Foreign Bank Account’
  4. Make sure the invoice is now converted to a Tax Invoice
  5. To check that the gain/loss has been captured, run a report such as GL Detail to see the full transaction coverage