Forex

vaishali (accountant) (52 Points)

05 May 2012  

What are the standard accounting systems for booking of  Forex transactions like booking of import purchase & making payment for the same. Presently we book import purchase on the basis of Custom exchange rate & after LC due date ( or forward booked previously  we make payment as per dollar rate. But due to this some time it occurs heavy losses which affect the profitability.

Is there any  other standard accounting system  to avoid such losses other than above ?? and what will be the proper heading & grouping for said difference "

Awating your early reply.

Thanks

Priyal