E-commerce

FX Gain on USD Inventory Purchase

Recording a foreign exchange gain when a USD supplier invoice is settled at a more favorable rate.

Account NameTypeDebit ($)Credit ($)
Accounts Payable (USD Supplier)Liability (-)10,000.00-
Cash in Bank (JOD)Asset (-)-7,050.00
Foreign Exchange GainRevenue (+)-50.00

💡 Accountant's Note

If the JOD strengthened against USD between the invoice date and payment date, the store pays less in local currency than expected. The saving is an FX gain on the income statement.

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