As a year end adjustment which conversion rates should be used for following items.
01. Open advances ( as on 31.03.2008 ) to foreign vendors
02. Open advances ( as on 31.03.2008 ) from foreign customers
Im confused with TT Buying / selling rates............ Can anybody elaborate me on the usage of these rates.
If our company paid advance of US$ 5,000=00 in the mid of march 2008 @ Rs. 42.50............ If I want to calculate exchange rate difference as on 31-march-2008 on that transaction which rate ( TT BUYING OR SELLING ) shouls be used ? For example if it Rs. 43.00 ( per USD ) ..... what will it denotes ? Exchange Rate Flactuation Gain or Loss ?
Thanks and Best Regards