I am desperately looking some light at the end of the tunnel.
I have two accounting software, one record transaction in the local currency, MUR , and the other one in USD. I have two separate TB with tallies to zero so far.
The complication starts when some client decide to pay us in USD while they were charged in MUR or when our orders is followed in MUR and the supplier is charging us in USD. To cut it short, we have created a contra account - let say if we post in our MUR currency as debit 1000MUR, I would have post in my other accounting software (the USD one) its equivalent as credit $30.
Note that the reporting currency is MUR.
The problem starts now. basically the USD amount should equal to the MUR account for it to be zero; in doing so, this will create a foreign exchange difference. To elaborate a bit more, let assume that the TB USD = o if all adds up and assume that the closing rate 1 usd = 30 MUR. ceteris paribus, if we change the value of the contra account to the MUR one, there would be a difference in the TB and will not add up to zero.
How should I proceed? this is driving me demented :-(
I have two accounting software, one record transaction in the local currency, MUR , and the other one in USD. I have two separate TB with tallies to zero so far.
The complication starts when some client decide to pay us in USD while they were charged in MUR or when our orders is followed in MUR and the supplier is charging us in USD. To cut it short, we have created a contra account - let say if we post in our MUR currency as debit 1000MUR, I would have post in my other accounting software (the USD one) its equivalent as credit $30.
Note that the reporting currency is MUR.
The problem starts now. basically the USD amount should equal to the MUR account for it to be zero; in doing so, this will create a foreign exchange difference. To elaborate a bit more, let assume that the TB USD = o if all adds up and assume that the closing rate 1 usd = 30 MUR. ceteris paribus, if we change the value of the contra account to the MUR one, there would be a difference in the TB and will not add up to zero.
How should I proceed? this is driving me demented :-(