Forum Discussion

Wilhelmina1's avatar
5 years ago

Forward contracts

We are a NZ based export company and have recently secured 5*forward contracts with staggered due dates for cash flow purposes. How do we account for them in the Multi Currency module of MYOB given they do not match the sales flow? I'd be grateful to hear from anyone who deals with this. Many thanks.

  • Thank you for that. I have. Regards


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    • Wilhelmina1's avatar

      HI Mike

      Yes I am, forward exchange contracts.

      Looking forward to hearing about it.



      • Mike_James's avatar
        Ultimate Partner

        Hi Wilhelmina1 , so perhaps you have taken out forward exchange contracts maturing at various dates for the sale of various foreign currency amounts, to allow you to obtain NZD funds for invoices from overseas customers at known rates, thus protecting your gross margins. (I note you mentioned you are an exporter).


        Really, there are no additional entries to be made in your AccountRight file, beyond the normal banking entries. However, you will probably need records kept in a spreadsheet to manage your FEX contracts, for example if you take up parts of the contract over a period of time and you need to know how much is left on each contract.


        The funds used under each contract will determine the exchange rate that you apply when receipting sales invoices in AccountRight. Your contracts may mature before you receive the funds, in which case you would either extend the contract (at a new exchange rate), or allow the contracts to mature and use  existing foreign funds to purchase NZD.


        Do you have any particular questions? I hope my answer is helpful.