Foreign Currency Conversion Rate

When you book a Foreign Currency transaction in Saasu, you capture the FX conversion rate. However, if customers are paying you later, the FX rate can differ as time has passed and FX markets have moved.

Example: You are a Australian business and the AUD dollar is currently at 0.80. You enter a sale into Saasu for USD100.00. In this transaction, Saasu books two items to the ledger:

  • AUD $100 to Income: XYZ (Local currency transaction amount).
  • USD $25 to Income: XYZ (FX conversion amount).

This allows us to control various reporting and display situations. It also enables accountants to isolate the FX conversion amount ($25) from the transaction amount ($100), among other things.

Later when a payment is applied to the transaction, the FX rate may differ to the initial one used on the transaction date. There are now two FX rates – One on the transaction date and one on the payment date. The difference between these rates is booked to the FX Gain or Loss account.