Foreign exchange gains (losses)

1

hello

i purshase some plugins in dollars. but i paid from my credit card in euro.
they bill me with a foreign exchange fee and i dont now how i can issue this payment to foreign exhange gains (losses)

2

Do you mean the bank? As in you paid using a fixed rate at the beginning and then you received a separate charge of the difference from your bank?

3

Or is it a bank charge?

Post it to an expense account?

4

its a bank charge. i paid for the pluging and they charge me extra for the foreign exchange fee.
when i go to issue this pahymepaymentnt i cant select the Foreign exchange gains as the account it should be issued. the foreign exchange gains account is active but as a build in account of course.

hope you understand what i mean

5

The foreign exchange gains/losses account is to record gains and losses on foreign exchange transactions.

It is calculated automatically by Manager using the exchange rates you enter and the foreign currency in the transaction amount.

The fee charged by your bank is not a foreign exchange gain or loss but simply a Bank Charge and should not be posted to the Foreign Exchange Gain/Loss account

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6

It is a bank charge but it’s also an exchange difference between the bank’s standard rate and actual rate. And I believe @dimgeorge wants to see these as such.

Since manager reserves the “foreign exchange gain (loss)” for auto calculations on invoices vs payment, you can create another account (e.g. bank exchange differences) and group those together under a group for all FX differences.

7

The original post does not specify whether the charge is a fee charged for the exchange transaction or a fee charged because of the difference in exchange rates.

Without further information we cannot be very categoric about the type of fee. From my experience with banks and foreign exchange transactions, it is more likely to be a fee than an exchange rate conversion correction but who kmows?

In a later post, it was confirmed as a bank fee

8

Some banks (at least in my country) allow you to transact in any currency immediately and it will appear in your statement at some default rate. Any exchange difference will be charged later once they apply actual rate.

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