Here's the scenario in Xero:
Company A - Business
Company B - Forward Contract seller
A agrees to buy $300k from B on 21st Jan at a £-$ exchange rate of 1.3040. The transaction date for the forward was the 6th Dec and non-refundable deposit of 5% was taken.
However, the forward was only part exercised.
15th Jan - $195,600 purchased for £142,500 (150,000 less 7,500 deposit)
21st Jan - $45,640 purchased for 35,000.00
So the transaction in Xero..
Money paid (6th Dec) to Company B - the 5% deposit
Money paid (15th Jan) from GBP account to Company B - £142,500
Money received (15th Jan) to USD account from Company B - $195,600
Money paid (21st Jan) from GBP account to Company B - £35,000
Money received (21st Jan) to USD account from Company B - $45,640
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I'm a bit unclear about the bookkeeping in Xero for the above transactions? Any guidance would be most welcome.
Replies (1)
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Presumably this transaction has manifested itself as a transfer of £ to $ in two bank accounts within Xero? If so - deal with as a bank transfer between the two - you can override the exchange rate used in Xero (look it up in the help).
If you've paid for goods or doing something else - more info required