Our company is US listed company based in PRC. We encounter the following problem.
1. We receive sales orders in USD and purchase materials in USD.
2. We record the transactions in RMB (PRC currency) by using the current exchange rate in system (e.g. USD:RMB=6.3)
3. We convert the transactions from RMB to USD by using average exchange rate (e.g. USD:RMB=6) when we generate the US GAAP report
4. An exchange difference occur, and we have to make adjustment
I think the above process could be improved by properly change the system settings or operation, but I don't know how. Could anybody give me some ideas?
Thanks a lot!