Residing in Australia, I work with US customers and get paid in US dollars (foreign currency). I don’t always convert money from USD to AUD, and if I do, it’s usually an arbitrary amount on an arbitrary day.
Now, how do I setup Manager, and what would be the corresponding income and exchange transactions, in order to be able to report both unrealized and realized currency exchange gains and losses?
Here’s how I see it (simplified):
Income ... US Client A Assets ... US Bank ... AU Bank Trading:Currency (some kind of automatic accounts?) ... AUD ... USD
When I got paid USD 1000, I recorded the first transfer:
Income:US Client A => Assets:US Bank USD $1000
This was worth AUD $1500 at 1.5 AUD = 1 USD, but I left it in USD.
Also, AUD $1500 is what I will have to report in my business activity statement for GST purposes - i.e. the amount in AUD converted with using the exchange rate of the transaction date.
Next, say in 1 month time, I convert USD $100 to AUD $130 at 1.3
My understanding is this transaction should generate a realized loss of AUD$20
At the end of the financial year, in my report to the taxation office I need to put something like this:
Taxable Income: AUD $1500 Deductible Expenses: ... Realized currency exchange loss: AUD $20
Is this how Manager would calculate realized currency exchange gain/loss?
What of the approaches available does Manager use technically for multi-currency double-entry accounting?
In Manager, can I specify transaction exchange rate that is different to the one found in the currency exchange table for the same date, but still leave the latter unaffected by the rate specified in the transaction?
Please advise. – Many thanks, Anton