FOREIGN EXCHANGE RATE

Sales = Buying Rate/ Put Option Purchases = Selling Rate/ Call Option

Direct Exchange Rate = Multiply

Indirect Exchange Rate = Divide
Payment= $ amount paid /$ AP x Php. AP
Collection= $ amount collected/$ AR x Php. AR

Transaction Date (TD) - Date of shipment, no shipment; date of invoice

Shipping point – date of invoice
Destination – date of delivery or receipt
Balance Sheet (BS) – End of the year
Settlement Date (SD) – After the balance sheet date

Note: Changes between Transaction date and balance sheet will be recorded on Forex
Gain or Loss partner with Accounts Receivable and Accounts payable.

The purchases and sales account remain the same despite of the changes in rate.

FOB Shipping point – at the date of invoice

FOB Destination – the date of delivery or receipt