Foreign currency transaction RMB entry function settings

The foreign currency exchange business or transactions involving foreign currency exchange that occur by an enterprise shall be converted according to the actual exchange rate used in the transaction (i.e. the bank's purchase price or selling price).

"Example" Company A's bookkeeping standard currency is RMB, and its foreign currency transactions are converted at the spot exchange rate on the trading day. On July 28, 2009, the payment of 1 million euros to the bank was exchanged into RMB. The bank's purchase price in euros on that day was 1 euro = 9.51 yuan, and the median price was 1 euro = 9.72 yuan.

In this example, the enterprise and the bank have a currency exchange, and the exchange rate used for the exchange is the purchase price of the bank, while the spot exchange rate usually used for bookkeeping is the middle price, and the resulting exchange difference is included in the current financial expenses. Company A's accounting processing on that day is as follows:

Debit: Bank deposit - × × Bank (RMB) (1 000 000 × 9.51) 9 510 000

Finance charges - exchange difference 210 000

Credit: Bank deposits - × × bank (EUR) (1 000 000 × 9.72) 9 720 000