N
Nortski
- Original Poster
- #1
Hi all.
Hopefully I can explain this correctly without making you all cross-eyed.
I own a small e-commerce business and recently I opened up my inventory to the European Amazon marketplaces. As a result, I receive sales in EUROS. Amazon does not automatically convert these sales and the subsequent sales fees to GBP. I do this manually using the day's current exchange rate, well the rate that Google states anyway. Amazon doesn't deposit each sales into my bank, they hold the funds and transfer the balance twice a month. So on my Amazon account I have an amount in EUROS, whereas in Quickbooks I have an account in GBP.
When Amazon finally transfers the balance to my bank, the chances are it will be at a different exchange rate from when I did the initial conversion for each sale.
SO, how do I account for a loss or a profit from this conversion?
Hopefully I can explain this correctly without making you all cross-eyed.
I own a small e-commerce business and recently I opened up my inventory to the European Amazon marketplaces. As a result, I receive sales in EUROS. Amazon does not automatically convert these sales and the subsequent sales fees to GBP. I do this manually using the day's current exchange rate, well the rate that Google states anyway. Amazon doesn't deposit each sales into my bank, they hold the funds and transfer the balance twice a month. So on my Amazon account I have an amount in EUROS, whereas in Quickbooks I have an account in GBP.
When Amazon finally transfers the balance to my bank, the chances are it will be at a different exchange rate from when I did the initial conversion for each sale.
SO, how do I account for a loss or a profit from this conversion?
