FX Calculations on P&L - New Feature Request - Please take into account COGS for the same currency
Hello Team,
In P&L we have the concept of FX Calculations for foreign currencies:
Bank Revaluations
Realised Currency Gains
Unrealised Currency Gains
By design this takes the full amount of debt/credit and converts it to a base currency.
But in situations where COGS are paid for in the same currency, there should be a concept of only applying these FX movements on the net margin remaining.
For example.
I have an Australian business. Base currency AUD.
I send an invoice of EURO 100,000 to my Parisian client for the month. I receive the 100k in my EURO Foreign Currency Bank account.
I pay Facebook EURO 90,000 for the media spent for this client out of my EURO Foreign Currency Bank Account
I have remaining EUROP 10,000 that I leave in my EURO Currency account.
By Design, XERO calculates the 100k EURO invoice (and any movements from INV creation to INV Paid) FX back into AUD
I think it does the same with the Facebook costs of 90,000 EURO -> Back to AUD
When in fact, the only fx movement I want in the P&L is the 10,000 EURO margin I made.
XERO Support have acknowledged this.
So this is a request to build a feature in to recognise COGS and any net margin should be calculated as FX and keep our P&L accurate.
Matthew Cahill
shared this idea
Thanks for submitting your idea on Xero Product Ideas. We appreciate you taking time to let us know how we could improve Xero for you.
Your feedback will soon be reviewed by our Community team, and in the meantime this can begin to build support with votes from other community members.
If you're interested to see recent releases or get a pulse on what's coming soon see The Long and Short of it. 🙂