[GNC] Foreign Currency Receivable

[Gao Bite]

Mr. or Mrs. Novack:

Hello! I am probably not making myself clear in the last e-mail, so I 
wish that you could allow me to clarify myself in this e-mail.

I put my game on the Steam platform and priced it in CNY. Let us assume 
that purchases happen in March. When players in China buy the game, they 
pay in CNY (without having notice of foreign exchange done by Steam's 
partner), and Steam possibly receives their payments in USD. At the end 
of March, I received an invoice telling me about data for the game's 
sales in March, a 30 percent deduction from the Steam platform, and a 10 
percent of income tax. At the end of April, I received my part in USD.

I wonder if I clarified myself in this e-mail. If you still have some 
points not sure about, I wish that you could let me know it.

       Yours,


     Bite Gao

May 26th, 2021

On 2022-05-25 22:23, Michael or Penny Novack wrote:
> On 5/25/2022 12:01 AM, Gao Bite wrote:
>> GnuCash Developers and Maintainers:
>>
>>    Hello! I am a Chinese developer who sells games on the Steam 
>> platform. When I sell my game work on steam, I receive the sales 
>> report every month containing data for last month's game selling. And 
>> I will receive last month's money in USD at the end of this month. My 
>> base currency is CNY.
>>
>>   How can I perform my accounting to record the gain and losses from 
>> game selling and foreign exchange separately? 
>
>
> What data is on this statement beyond gross amount in USD? Is the site 
> doing all transactions in USD (games sold for some price in USD as 
> opposed to the currency of the buyer). If you are selling different 
> games at various prices, unless you are told how many of each........ 
> However it might be simpler for somebody like yourself who is the 
> fabricator of an intangible << most sellers would be selling tangible 
> goods with an associated  "cost of goods" but possibly/probably you do 
> not* >>
>
> ARE you selling goods at some price in USD, does  your statement make 
> clear how many units sold (at what price) , does it show the fees the 
> agent is deducting, etc? Possibly there is no currency exchange 
> involved YET. Maybe the only gains/losses form currency exchange would 
> between the time you receive this statement and payment in USD and you 
> get that converted into CNY in your bank account.
>
> In other words, if you receive a statement from the agent "sales in 
> March were $XXX (as of 3/31) but you do not receive into your bank 
> account YYY in CNY  until April 25th you might want to consider the 
> value of ($xxx - fees) in CNY as of march 31 the base and any 
> difference between that and the CNY going into your bank on April  
> 25th a gain or loss from currency exchange.
>
> Michael D Novack
>
> * But if you had programmers working for you, you possibly/probably 
> would be associating a "cost of goods" separating your business 
> operation between "production" and "marketing" because you might want 
> to see how each is doing separately.