How can you connect foreign exchange into inflows and outflows?

Question

how can you connect foreign exchange into inflows and outflows?

Answer 1

Do you mean in accounting, if that is so then you can connect this by utilizing special profit and loss account entries (depending on country). You book the sale using the current exchange rate and the payment with the spot rates, this will enable you track currency exchange losses or gains from a transaction.

To be able to hedge such a situation you can mention it on your receipt that the payment should be corrected for prevailing exchange rate when the payer pays, this will avoid opportunism.

In case you are referring to your daily general ledger entry some business suite softwares have a foreign exchange entry point that you can utilize but this will make your prices fluctuate and can cause alarm.