ForEx Transactions accounting method

This query is : Resolved

Kannan (Querist)
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17 March 2008 Dear Sir,
We have invoiced to Foreign buyers in USD, AED & GBP. While we raise invoice we book sales and expenses in any at the rates CBEC rate of exchange of conversion of each of the foreign currency. At the time of payments realised in our foreign branch or else we received TT from buyer the rate at which it realised is taken into account in Tally9. Incase if we receive a TT from our foreign branch say $10000 @ 39-30 which is fully converted into our cc a/c or (EFC a/c maintained in USD) whether we have to credit the rate at which realised or avg rate or standard rate in order to tally
with Branch account maintained in india.
Further in EFC account in USD should be accounted in average rate or standard rate
prescribed by CBEC rate?

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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27 May 2008 book revenue with rates as of invoice date. difference with actual payment will go to P&L as exchange loss/gain.

ave. of tt buying/selling shud be used