[GNC] Foreign Currency Receivable

[Gao Bite]

GnuCash Developers and Maintainers:
   I believe that I have no more problems with Steam revenue's accounting. Thanks a lot for your help.

Regards,
Bite Gao
May 26th, 2022

On 2022-05-26 12:59, John Ralls Wrote:
> Gao,
>
> You have a couple of options. The simplest would be to just ignore that USD is involved at all and convert all of the USD amounts to CNY and post the CNY amounts to GnuCash. That obviously loses a bit of detail.
>
> Next up in complexity would be to create some USD accounts for income, expense, and accounts receivable (make that account type bank, not type accounts receivable, for this approach). You'll post those from the monthly statements. When you receive the actual payment you'll credit accounts payable in USD and debit your CNY bank account using whatever exchange rate your bank gives you on the conversion. Depending on how you handle the withheld taxes you also may need a USD or CNY asset account for pre-paid taxes. If you keep the payments in a USD-denominated account then you'd create a bank account in GnuCash to model it and debit it on payments. If you want to track unit sales you could make the income account in CNY and use the CNY->USD exchange rate reflected in your statement. For example if you price the game at CNY 150, you sold 10 of them in April, and your steam statement says that your revenue was USD 100 then you'd credit income CNY1500 and debit Expenses:commision USD 30, Assets:Prepaid taxes or expenses:taxes (depending on how you have to handle the taxes), and Assets:AccountsPayable USD 60. Then when you get the payment and your bank converts the USD 60 into CNY 800 you'd credit accounts payable USD 60, debit CNY 800 and debit Income:Trading Gains CNY 100.
>
> If you want you could go a step further and use the business module to convert the steam statement into an invoice. In that case you'd make the accounts payable account type accounts payable.
> IIRC the business model doesn't know how to handle the exchange rates and trading gains so you'd have to do that part manually, but it might provide some reports that you'd find useful enough to justify the extra work.
>
>> On May 25, 2022, at 5:25 PM, Gao Bite <redfrog2000 at outlook.com> wrote:
>>
>> 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.
>>
>> 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.
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