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invoice in foreign currency and difference on payment due to exchange rate

Discussion in 'Accounting and Legal' started by lsac, Aug 7, 2016.

  1. lsac

    lsac New Member

    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.
     
  2. Dynamoaccounts

    Dynamoaccounts New Member

    Yes, profits or losses on exchange should be accounted for in the records and shown in the Profit & Loss account
     
  3. Lupita

    Lupita Member

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