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
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