Because China uses RMB as the bookkeeping base currency, when enterprises have foreign currency income, they must convert it into RMB for bookkeeping. Exchange gains and losses refer to foreign exchange gains and losses caused by exchange rate changes, that is, the difference when converted into RMB for bookkeeping. Because it belongs to the accounting content of financial expenses, the account name of its detailed accounting is "exchange loss", and the net exchange loss is deducted from the exchange income.

For example, if an enterprise receives US$ 65,438+000 on March 65,438+00 and the exchange rate on that day is RMB 65,438+0 = 8.5, it will be converted into 850 yuan. At the end of the month (March 3 1), if the exchange rate is 1 USD =8.4 RMB, it will be converted into 840 yuan. This 10 yuan is exchange loss, which has nothing to do with the production and business activities of the enterprise, so it is included in "financial expenses-exchange loss". If there are exchange gains (for example, the exchange rate at the end of the month is 1: 8.6, which is converted into RMB 860 yuan, and this 10 yuan is the exchange gain), it will be credited to the account.

If the enterprise is a foreign enterprise, you can set the first-level account of "exchange gain and loss".