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1 minute of practical work for the boss · 006 cost management Foreign currency payment operating expenses

Foreign currency subscription fees are written in Korean won confirmed by the card.

Approximately 4 minutes to read BlueCanvas

How much should I enter the overseas service subscription fee in my ledger?

Write down the Korean Won charge confirmed on your card statement and leave it based on the dollar amount and statement location. Since the Korean Won bill is converted to dollars at the international brand exchange rate and then calculated by applying the wire transfer rate based on the international card company processing date and also includes the overseas usage fee, the approximate value directly multiplied is not the basis for comparison at the end of the month.

Key takeaways

  • If you multiply the dollar amount on the receipt by the exchange rate and write it down, the won amount that will appear on your card a few days later will be different numbersIt remains in the ledger.
  • The Korean Won bill is not determined by the exchange rate multiplied by me. The card company determines the base date and calculation., overseas usage fees are also included in that amount.
  • Just move it without calculating it. Find the same transaction on your statement Confirmed amount and statement locationThis convenient method is to write it down together.

The amount less on the day of payment will change in a few days.

Receipts for overseas business tools will be stamped with dollar amounts. Since I can see it right away on the payment date, I multiply it by the exchange rate I know and write it down as “about 26,000 won.” However, the Korean Won amount that appears on the card statement a few days later is different from that value.

It's the same deal, but there are two numbers. one is I estimated the valueand the other one is Value confirmed by the cardno see.

Problems surface at the end of the month

When I try to match the management table total and the card charge total at the end of the month, the numbers are different. This is a common occurrence up to this point. What's really difficult is what comes next. Since I only wrote down the amount, I couldn't tell which line was off, so I had to read the statement again from the beginning.

At a small approximate value, A place to return toThere is no. This is because there is no record of which statement line the amount came from.

I'm not the one who picks the exchange rate

The calculation order is written in the card company's instructions. KB Kookmin Card wrote, “Amounts used overseas are converted to dollars (USD) according to the exchange rate specified by the international brand company, and the amount converted to dollars (USD) is converted to Korean won (KRW) by applying KB Kookmin Bank’s wire transfer selling rate.”

The time of application is also not the date of payment. BC Card wrote that “the exchange rate applied for won conversion is based on the international card company processing date,” and also explained that “the won billed amount includes a designated overseas usage fee for each bank.”

Commission rate and exchange rate numbers are not included in this article. Since the information varies and changes depending on the card company and international brand, it is best to check directly with the information provided by the card company you are using.

Move without calculating

Open the statement, find the same transaction, and change the amount column in the management table to the confirmed amount and write it down. Do not erase the dollar amount, but leave it next to it as a basis.

CannesWhat to write
Service nameService name written on receipt
Foreign currency principal/currencyWrite down the currency as well, such as USD 20.00
Confirmed Won bill amountTransfer the amount confirmed on the statement as is.
billing monthEnter the billing month, not the payment month.
Expected/confirmed statusIt is an estimate before it is included in the statement.
ground locationWrite it down so you can find it again, like “September statement line 3.”

Six spaces may seem like a lot, but there is no new value to calculate. This involves transcribing already confirmed values ​​and only attaching where they came from.

Transactions that have not yet risen are considered forecasts.

If you add transactions that don't appear on your statement, your monthly operating expenses will fluctuate. You can mark it as expected and change it to confirmed after checking the statement.

The credit card company's instructions also state that the approved amount and the final charge amount may differ. There are cases where overseas affiliates “pay (approve) a certain amount of deposit in advance” and charge the final usage amount, and the amount may change due to the exchange rate at the time of purchase and cancellation.

Today I only get one correct answer.

Simply select one of your recent foreign currency subscriptions, find the amount on the confirmation statement, and write down the statement location on that line. That one line becomes the standard for the rest of the lines.

Additionally, this record is an internal record to verify operating expenses and is not the basis for conversion for tax reporting.

Full video subtitles (6 scenes)

I wrote 20 dollars

The dollar amount on your receipt and the Korean Won charged to your card are different numbers.

Same transaction, but two numbers

The USD 20.00 receipt, the KRW 26,000 I wrote down, and the KRW 28,000 confirmed by the card pile up in that order.

I can't find the line at the end of the month

The totals are off, but the supporting position is empty, so I have to read the statement again from the beginning.

I'm not the one who picks the exchange rate

After converting the dollar to the international brand exchange rate, the wire transfer selling rate on the processing date is added, and a commission is also included.

Write it down as a confirmed amount.

Find the same transaction on your statement, change the amount and status, and leave the dollar amount and location as the basis.

I only check one thing today

Pre-confirmed transactions are considered as estimates, and only one foreign currency subscription is selected and matched.

Frequently Asked Questions

Can't you just multiply the exchange rate on the day you made the payment?

It doesn't fit. If you look at the card company's information, the overseas usage amount is converted to dollars at the exchange rate specified by the international brand, and then converted to won by applying the wire transfer selling rate based on the international card company's processing date. It is based on the processing date, not the payment date, and the overseas usage fee is also included in that amount. So, the directly multiplied value may be similar by chance, but it is not a basis.

Can I write down the amount shown on the approval letter?

It is better to keep it as an estimate before confirming it. The card company's information states that in some cases, overseas merchants only approve the deposit first and then charge the final usage amount, and that the exchange rate at the time of purchase and the time of cancellation is different, so the amount may change. After checking the confirmed amount on the statement, change the status to confirmed and also write down the statement location.

Why do I need to write down the location of the evidence?

This is to avoid finding the same line again next month. For foreign currency subscriptions, the name is often stamped with the agency name, so if you just write down the amount, it is difficult to trace later which line of the statement it came from. If the totals do not match at the end of the month, you can immediately write down the location, such as “September statement line 3,” so that you can immediately know where to correct it.

Can I use this record as is for my tax return?

You shouldn't use it like that. This is an internal record to determine what your monthly operating expenses are. Tax conversion standards and recognition points follow separate regulations and vary depending on business type and bookkeeping method. Please check with your tax accountant or tax agent for the actual value to be used in your report.

The amount must be accompanied by evidence to determine the amount.

BlueCanvas cost estimate displays the included items and estimated amount as sentences on the screen. You can first check what is included and what is separate.

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