On Sun, Oct 20, 2002 at 12:54:33PM -0600, Joseph wrote: > On Sat, 2002-10-19 at 18:26, R Ransbottom wrote: > > On Fri, Oct 18, 2002 at 01:30:32AM -0600, Joseph wrote:
> > > One thing I would like to see is truly multi-currency accounting system. > > > We sell our products Internationally, so our preference is to keep > > > prices in USD. Our inventory is in USD as well and it stays this way, > > > as some prices are sensitive so converting it to local currency > > > (Canadian Dollar) would generate a loss as difference between selling > > > and buying USD is about 0.08 on each dollar (our loss). You are looking at valuations as if transactions occurred, this is not valid. > > I am in the US so my view may be skewed. > > Accounting here is based on the stable currency precept. > > That implies books kept in one currency. > > Are you maintaining accounts in both currencies? I meant are you maintaining accounts on your books in both currencies. > Yes, we have a USD Account and CAD Account. All credit card sales are > converted to Canadian Dollars (and deposited to CAD Account; we can not > Yes, it might be hard to understand as you are in USA and you banking in > USD so there is no need for conversion. But international companies who No, the lack of info in your initial post made it impossible to tell what was your operational accounting and what was your financial accounting, and when and where the currency conversions are showing in each. In accounting there is often more than one right way to do something. It sounds like your accountant may be doing a lot of converting to generate your "real" books from the info you give. The difference in day to day paperwork changes drastically when you go from a system where someone works to get a "snapshot" to a system where the statements can be created by an automated process at any time. The amount of detail in each transaction needs to be greater in the latter. I have a better idea of what you want your system to do to support ongoing operational decision making. How you want to resolve your accounts in a financial sense is still vague. > > > We sell and buy our products in USD to many Canadian customer as well, > > Would you accept $CA against such a bill? > Yes we would, but we would have to markup such transaction up by 0.045 That sounds like a no to me. It seems you have a lot of work ahead and that you are on the right track.
