In the agency export business, it is usually necessary to confirm the exchange difference. When the agency export involves foreign currency settlement and the exchange rate changes between the transaction date and the settlement date, an exchange difference will occur.
For example, when exporting goods, the amount of accounts receivable is determined according to the exchange rate at that time, but when the payment is actually received, the exchange rate has changed, and an exchange difference will occur at this time.
To confirm the exchange difference, generally on the balance sheet date, for monetary items (such as foreign currency accounts receivable, etc.), the spot exchange rate on the balance sheet date is used for conversion. The exchange difference arising due to the difference between the spot exchange rate on the balance sheet date and the spot exchange rate at the initial confirmation or the previous balance sheet date is included in the current profit and loss.
When calculating, multiply the amount in foreign currency by the spot exchange rate on the balance sheet date and subtract the amount in the reporting currency converted at the initial exchange rate. The resulting difference is the exchange difference.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In the agency export business, it is usually necessary to confirm the exchange difference. When the agency export involves foreign currency settlement and the exchange rate changes between the transaction date and the settlement date, an exchange difference will occur.
For example, when exporting goods, the amount of accounts receivable is determined according to the exchange rate at that time, but when the payment is actually received, the exchange rate has changed, and an exchange difference will occur at this time.
To confirm the exchange difference, generally on the balance sheet date, for monetary items (such as foreign currency accounts receivable, etc.), the spot exchange rate on the balance sheet date is used for conversion. The exchange difference arising due to the difference between the spot exchange rate on the balance sheet date and the spot exchange rate at the initial confirmation or the previous balance sheet date is included in the current profit and loss.
When calculating, multiply the amount in foreign currency by the spot exchange rate on the balance sheet date and subtract the amount in the reporting currency converted at the initial exchange rate. The resulting difference is the exchange difference.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If the agency export involves foreign currency receipts and payments and the exchange rate fluctuates, the exchange difference basically needs to be confirmed. It is generally confirmed when receiving the payment for settlement, and calculated according to the difference between the actual exchange rate at that time and the recording exchange rate.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Generally, when the exchange rate changes significantly and the time interval from the transaction occurrence is long, the agency export needs to confirm the exchange difference. The calculation is to subtract the amount calculated at the old exchange rate from the amount calculated at the new exchange rate.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
When the agency export contract stipulates settlement in a certain foreign currency, the exchange difference needs to be confirmed in the collection process due to the change in the exchange rate. It is calculated by multiplying the difference between the exchange rate on the day and the recording exchange rate by the amount in foreign currency.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In the agency export business, if the exchange rate changes significantly from the time of export to the time of collection, the exchange difference should be confirmed. It is calculated according to the difference between the exchange rate on the collection date and the recording exchange rate at the time of export.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the agency export process spans the balance sheet date and the exchange rate fluctuates, the exchange difference needs to be confirmed and calculated according to the adjustment of the exchange rate on the balance sheet date.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
As long as the agency export involves foreign currency settlement and the exchange rate at the time of settlement is different from the exchange rate when confirming the export revenue, the exchange difference needs to be confirmed and calculated by simple subtraction.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In the agency export, when the balance of the foreign currency account changes due to the change in the exchange rate, the exchange difference needs to be confirmed and calculated according to the adjustment of the latest exchange rate.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If the agency export involves forward foreign exchange collection and the exchange rate fluctuates during the period, the exchange difference needs to be confirmed and calculated according to the difference between the exchange rate on the maturity collection date and the exchange rate on the export date.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the settlement currency of the agency export is not the domestic currency and the exchange rate is unstable, it is very likely that the exchange difference needs to be confirmed and calculated according to the difference between the actual settlement and the recording exchange rate.