cash flow in foreign currency


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Hi,

I am new to this forum and not quite sure where to start.
But then, I do have questions and any help will be much appreciated.
I am using a foreign currency, say USD to create the cash flow.
Our transactions (AR) are denominated in USD but our expenses our
paid in PHP. And then we have interbank transfer from USD to PHP
bank accounts. As I tried to generate the cash flow in USD, I am encountering
discrepancies as I tried to reconcile the cash in bank (consolidated - USD and PHP)
with my cash flow (this is for internal reporting). I translated our expenses to USD using
the exchange rate at the reporting date. Then, as for the interbank transfer, I used the actual forex
rate at the transaction date which gives me realized gains or loss on forex
interbank transfer. Still, I am encountering discrepancy. Am I doing this right or
wrong?

This is my first time to generate this kind of report in foreign denominated transactions
and I am doing it manually.

Hope you can help.

Thanks!
 
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kirby

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Do the cash flow using the bookkeeping currency used for you books. That will keep everything consistent as the books MUST be based on only one currency for bookkeeping purposes.
 
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Joined
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Do the cash flow using the bookkeeping currency used for you books. That will keep everything consistent as the books MUST be based on only one currency for bookkeeping purposes.
I did. I converted the PHP to USD. So all my amounts are in USD. Considered the effect of interbank transfer but still encountered discrepancy. So, I am thinking where is the discrepancy coming from...?
 

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