The exchange rate of USD against RMB is floating, which can only be counted when the stage occurs or the total transaction is completed.
Generally speaking, every month is calculated at the exchange rate of 1, or on the day of the transaction. If calculated according to the accounting period, it can also be the exchange rate at the end of the month or quarter.
It is also troublesome, that is, after all the projects are settled, they will be pushed to the first transaction to make accounts (this is not recommended, it is very troublesome)
Input method:
Debit: financial expenses-exchange gains and losses (can also be recorded as: bank deposits-RMB bank buying price * foreign currency amount.
Profit and loss arising from financial expenses)
Loan: bank deposit-USD (or entry: bank deposit-foreign currency account market exchange rate * foreign currency amount)
The ending market value of the ending book value of the balance dollar, positive value is income, negative value is loss, which can be used as expense reduction.
Depending on the exchange rate you use, such as today's exchange rate, early month exchange rate, mid-month/mid-month exchange rate and end-of-month/end-of-period exchange rate, the calculation of exchange gains and losses is different, such as:
1. The exchange rate at the beginning of the month is used for accounting, (exchange rate at the beginning of the month-bank acquisition exchange rate) × income USD.
2. The current exchange rate shall be used for bookkeeping, and the exchange rate is (current exchange rate-bank acquisition exchange rate) × income USD.
To put it simply: profit and loss from selling foreign exchange = market exchange rate * foreign currency amount-bank purchase price * foreign currency amount.
In addition, the exchange rate of the US dollar against the Pakistani rupee also fluctuated. In Pakistan, there is an exchange rate quotation of Pakistani rupee against RMB, depending on whether your boss calculates it in contract dollars or directly in RMB. However, the price of RMB in Pakistan has soared a lot recently, which seems to be a small loss and has no practical significance.
Regarding your supplementary question
It should be the simplest to calculate in rupees, because the contract amount should be fixed. I remember in your initial question, you wrote that the exchange rate between the US dollar and the rupee is fixed, so when you collect money there, it must be the rupee. The dollar has little practical significance. Remittance to China will also generate exchange gains and losses.
If your boss needs to see the exchange gains and losses, he should first explain the floating nature of the exchange, and then calculate the total amount according to the difference between the buying price and the selling price of the exchange price on that day. The cost does not need to be completed in a single transaction, and it is unlikely that a small sum will be remitted, and the cost is too high. Therefore, it is best to calculate the total income, or accounts receivable, or income MINUS expenses incurred in Pakistan, which is equivalent to what is ready to be remitted or has been remitted.
Is the salary of engineers in China remitted domestically or paid locally in Pakistan? Pakistan's payroll is to deduct money from the project account and put it directly into your rupee functional currency account according to the cost. Remittances from China must have exchange gains and losses, because they have to be converted into US dollars.
If the accounts are consolidated with the head office, if the company requires RMB, there will definitely be gains and losses, because you have to convert them according to the US dollar quotation.
2.