How to Convert Foreign Currency Transactions in Accounting Books in Japan日本で帳簿を作る際の外貨取引の換算の方法

【Koshida Accounting Firm Column Date:

“Conviction is worthless unless it is converted into conduct.” - Thomas Carlyle

「信念は行動を起こさない限り無価値である。」- トーマス・カーライル

 

ヨガをする女性

 

Hello, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

I aim to assist non-Japanese business owners who struggle with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

 

 

When foreigners with many overseas clients start businesses in Japan, they often engage in numerous foreign currency transactions.

外国の方が日本で起業して海外の顧客が多い場合などは、外貨建ての取引が多いでしょう。日本で帳簿を作る際には、外貨建ての取引はすべて円に換算する必要があります。

 

 

In this blog, I will discuss the method for handling these transactions.I hope this will enable you to efficiently and accurately record foreign currency transactions in your books.

今回のブログではその方法についてお話します。あなたが効率的に正しく外貨建ての取引を帳簿に記録できるようになれば幸いです。

 

1. The Timing of Exchanging Foreign Currency Transactions 外貨の取引の換算のタイミング

For sales, for example, it’s necessary to convert foreign currency transactions to Yen at three key times: when the sale occurs, when receivables are collected, and if there’s a financial closing within this period.

売上で例えると、売上が発生した時と売上金を回収した時、さらにその間に決算があった場合には、決算の時という3つのタイミングで外貨を円に換算する必要があります。

 

 

2. The Basic Rule of Converting Foreign Currency Transactions 外貨換算の基本ルール

(1)At the Time of Occurrence 発生時

Sales are recognized at the time they occur, typically coinciding with the closing day, such as the last day of the month. At this time, sales in foreign currency are converted to Yen by applying the exchange rate of that day to the foreign currency sales amount.

売上の発生時、すなわち通常は月末日などの締め日のタイミングで、会計上は売上を認識します。そして、その際には外貨建ての売上高にその日の為替レートを掛けて円に換算します。

 

 

(2) At the Time of Settlement 決済時

At the time of settling accounts receivable, the settlement is generally recorded in the books at the current exchange rate. Since this rate may differ from the exchange rate at the time of sale, it will result in exchange gains or losses.

売掛金の決済時には、原則としてその時の為替レートで回収を帳簿に計上します。売上計上時の為替レートとは異なるので、為替差損益が発生します。

 

(3)At the Time of Financial Closing 決算時

If financial closing occurs between the recognition of sales and the settlement of accounts receivable, the receivables are converted using the exchange rate on the closing day. This rate will differ from the rate at the time of sale, leading to exchange gains or losses.

売上の発生と売掛金の決済の間に決算がある場合は、決算の処理として決算日の為替レートで売掛金の換算します。売上計上時の為替レートとは異なるので、為替差損益が発生します。

 

 

3. The Specific Example of Converting Foreign Currency 為替換算の具体例

(1)At the Time of Occurrence 発生時

 

In April, a sale of $100 occurred. The exchange rate at the end of April was 140 yen.

Accounting Transaction: On the last day of April, the sale is recorded as 100 dollars multiplied by 140 yen, amounting to 14,000 yen.

 

 

4月に100ドルの売上が発生。4月末のレートは140円。

会計処理:4月末の日付で100ドル*140円=14,000円の売上を計上。

 

 

(2)At the Time of Financial Closing 決算時

Since the financial closing at the end of May occurs before the settlement, the exchange rate then is 130 yen.

Accounting Transaction: The conversion is 100 dollars multiplied by 130 yen, resulting in 13,000 yen. Since the yen has strengthened compared to the time of occurrence, an exchange loss of 1,000 yen (14,000 yen at the time of occurrence minus 13,000 yen at the time of closing) is recorded.

The exchange gain or loss at the end of the fiscal year is adjusted at the beginning of the next period. This means reversing the record by posting a one thousand yen exchange gain, returning it to the exchange rate at the time of occurrence.

 

回収の前に5月末の決算が来た場合です。5月末のレートは130円。

決算処理:100ドル*130円=13,000円。

発生時よりも円高になっているので、14,000円(発生時)-13,000円(決算時)=1,000円の為替差損を計上します。

この期末の為替換算損益は、翌期首で洗い替えします。つまり、翌期には為替差益1,000円を計上して発生時のレートに戻します。

 

(3)At the Time of Settlement 決済時

The account receivable was settled at the end of June with the exchange rate on that day being 135 yen.

Accounting Transaction: The conversion is 100 dollars multiplied by 135 yen, totaling 13,500 yen. An exchange loss of 500 yen is recorded, calculated as 14,000 yen (at the time of occurrence) minus 13,500 yen (at the time of settlement).

 

6月末に決済。その日のレートは135円。

会計処理:100ドル*135円=13,500円。

14,000円(発生時)-13,500円(決済時)=500円の為替差損を計上します。

 

 

4.The Exchange Rates at the Time of Occurrence and Settlement 発生時や決済時の換算レート

The primary rates used are the Telegraphic Transfer Middle Rate (TTM). However, using the rate from the end of the previous month or the average rate of that month is also acceptable, provided they are applied consistently. If efficiency is desired, these alternatives should be considered.

発生時や決済時の換算レートは、その時の電信仲値相場TTMが基本ですが、継続適用を条件に前月末や前月の平均レートなどでも問題ありません。効率性を求めるなら、これらを利用すべきでしょう。

 

5.Conversion of Foreign Currency Deposits and Other Assets at the Time of Financial Closing 決算時の外貨預金などの換算

At the time of financial closing, some assets and liabilities must be converted to Yen using the exchange rate on the final day of the fiscal year. For instance, foreign currency savings accounts must be converted using the Telegraphic Transfer Middle Rate (TTM) on the last day of the fiscal year.

決算時は、売掛金以外の資産や負債も期末日レートで換算する必要があります。例えば、外貨普通預金などは期末日のTTMで換算する必要があります。

 

 

6. Categorization of Foreign Exchange Gains and Losses for Consumption Tax 為替差損益の消費税の区分

Foreign exchange gains and losses are excluded from consumption tax. As sales can be classified as export transactions (which are taxable transactions with a 0% rate), it’s crucial to properly distinguish between recording sales and recording foreign exchange gains and losses. Failure to do so may result in issues during tax audits.

為替差損益は消費税の対象外取引となります。売上は実態に応じて輸出取引(税率ゼロの課税取引)などになるので、売上の計上と為替差損益の計上を適切に区別して会計処理する必要があります。そうでなければ、税務調査などで指摘を受ける可能性があります。

 

 

 

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