[3537]

Import/export and multi-currency accounting

Date:
February, 2016
Prototype:
proto$ gen VIII mod 4B91B2 (Ultima)
Customer:
anonymous
The number of currencies is not limited. The exchange rates differences are always correct. Right calculation of total cost of imported goods with different variants of the expenses allocation. dia$par helps to make unexpected discoveries of real marginality of product categories.

Companies that conduct export / import operations need to resolve two main issues to orginize proper accounting:
 

  • Correct Supply Cost Calculation
    The services of delivery from the supplier to the transit warehouse, storing, customs clearance, etc, are usually attributed directly to the cost of the goods being purchased.
    ?All kinds of related costs ("negotiations" at restaurants, employees" foreign business trips, and outright kickbacks) are overhead costs that can also be charged, logically, to the cost of the lot, but in the practice they hang up somewhere at the headquarters/central office level.
  • Taking Currency Translation Differences into Account.
    These arise from changes in currency exchange rates and represent the company’s non-operating gains/losses in a situation where the moments of price negotiation, payment and the actual beginning of sales are time-spread.

dia$par does not limit the number of currencies in which the operator can transact simultaneously.
In the course of primary dia$par set-up, the user will simply choose a base currency for accounting (whichever is more convenient).

Each balance-sheet ledger (kept in the base currency, of course) is mirrored by a foreign exchange (off-balance-sheet) one, in which entries in the required squids are made.

Example of report

dia$par will put the supplier’s currency and its exchange rate into the purchase document; by default, today’s exchange rate will be put in (automatically uploaded from designated websites at required intervals); the user may choose an exchange rate from the history if wishes.

The electronic analogue of a paper invoice records any debt owed to the supplier and sends the goods into transit while generating entries in balance-sheet (in the base accounting currency) and off-balance-sheet (foreign currency) ledgers.

For quick calculation of the reports (up to prompt building of the company’s management statements), the scheduled task will re-calculate and record the translation differences at preset intervals in the background — to update the status of related ledgers (debts, balances, mutual settlements).

The supply costs are assessed in their source currency.
In a document, the user may choose a scheme for splitting the costs between the document’s goods items.

Parameters of command

The default options are: in proportion to the costs, goods volume, or customs duties. Each distribution method (their list is and open-end one, and any schemes can be added) has its own business logic attached, hence
setup flexibility for "non-standard" cases.

Distribution method

Anyway, whatever cost accounting scheme is accepted in your company, each cost-generating procedure of a logistical nature will be correctly attributed to the lot’s cost price.

And after transition into dia$par by XYZ Co. (so eager to remain anonymous), a direct importer of > 100 000 goods items from dozens of vendors, their top management made a lot of thrilling discoveries concerning
the actual marginality of a number of goods groups.

Being inside dia$par. Some stories
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