Post by MS INYOFU (@theconscience)

ACCOUNTING HINT (PAYMENT + EXCHANGE GAIN/LOSS)

When settling foreign suppliers, use the actual rate on the payment date. If an invoice was recorded at N1,490 but payment happens at N1,540, the N50 difference is an exchange loss. If payment is at N1,440, the N50 saved is an exchange gain. Post payments as: Dr Supplier, Dr/Cr Exchange Gain or Loss, Cr Bank. Keep inventory at invoice value only. This gives a clean audit trail and shows the true cost of doing business internationally.

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