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
Hey Matthew, thanks for raising this with us as an Idea. I can see you have raised a case with Xero Support and I apologise if it sounded like this should be an option in Xero. The feature you are looking for would be in an inventory specific platform and not on an accounting platform which Xero is. For accounting and IFRS purposes the FX calculation must be calculated on the while amounts and not on the margins. Again apologies for the confusing wording this is not possible on an accounting only based platform.
