Option to remove foreign exchange expense

Please add option to remove foreign exchange expense or give any solution to make it zero

Remove foreign exchange expense from where? From your profit & loss statement? Are you saying the calculation is wrong?

Yes I need to remove from P&L statement&from inventory cost also as well. The inventory costs showing € 6,250 but actual value is € 8125

Why opening balance exchange rate is not changing to 1.2 from 1.6 even I change it in exchange rates setting?

You can’t remove foreign exchange gains (losses) from your P&L because if you made any Forex gains (losses), they must be shown on P&L otherwise your books won’t balance.

What makes you believe your inventory should be valued at 8,125 EUR? If you’ve purchased $10,000 USD worth of inventory at exchange rate 1.6, then in EUR, it will represent 6,250 EUR as Manager shows.

In Manager, inventory items value is always tracked in the base currency. It means, once inventory is purchased (regardless in which currency), future exchange rate changes won’t affect its value on hand.

No, I’ve purchased 10,000 USD worth of item at different exchange rate let me explain

Home= EUR while supplier= USD currency

I order the item worth 10,000 USD with supplier xyz with term&condition that I need to pay 10% advance so that he loads the container&remaining 90 % should be paid once the container arrive at my country.

So, I made the payment on 1/2/2016 1000 USD at exchange rate 1.6, which is 625 EUR.

Now my container arrive at 6/2/2016, on that day exchange rate is 1.2 so I paid remaining 9000 USD at 7,500 EUR so in my bank a/c total 8,125 EUR will be deducted.

So my total item cost should be 8125 EUR.

Regarding the Foreign exchange gains (losses) it should be zero then, but Manager calculating the 9000 USD at past 1.6 exchange rate.

On accrual-basis, purchase happened when you received purchase invoice. On cash-basis purchase happens when you actually pay for goods.

In other words, you are looking at accrual-basis report expecting cash-basis figures. If that’s the case, you simply need to set Summary page to show figures on cash-basis. The same goes for P&L report.

From your example you’ve given, on cash-basis, you wouldn’t see any foreign exchange gain or loss.

The example given above showing the foreign exchange loss in summary tab just see below image

How to do that?

Change the Summary by clicking Set Period at the top left corner. On the next screen a dropdown box appears.

Change the P&L by clicking Reports > Profit and Loss Statement > New Report and selecting whichever version you want from the dropdown box in the top right corner.

Oh thank you so much @lubos & @Tut for helping me, I didn’t know that Set Period may have accounting method option too, thought it just to set only for accounting period, extremely sorry for this.

There is one more problem again, inventory item total cost is still not updating to 8125 (4062.5 + 4062.5).

Only reports can be generated on cash-basis.

Everything else, including quantities and value on hand under Inventory items tab is shown on accrual-basis.

Chill Guys … just adjust your forex rate with respect to payment at invoice date