Wholesale Food Distribution Software Goes Global: Texas Firm Launches Foreign Exchange Accounting Module
HOUSTON, TX – January 27, 2008 – A wholesale food distribution software company has launched a foreign exchange accounting module designed specifically for the wholesale produce, meat, seafood and grocery distribution industries
“More and more companies are buying food from foreign vendors,” said Henri Morris, president and CEO of Edible Software, a division of Solid Software Solutions, LLC, the Houston-based company that developed the new wholesale food accounting software package. Morris, a CPA, said coding the foreign exchange module was huge project.
“It took our engineers more than 24 man-months to implement,” he said. “and we undertook this project because of the high volume of foreign commerce taking place – particularly between the U.S. and China, Mexico and Canada.”
Morris said wholesale food distribution is a complex process even when conducted on a domestic level. “But when you factor in the addition of two or more currencies, the chances for miscalculations on either the cost or the selling price are high. Almost inevitably,” said Morris, “a loss of profits is the result.”
In order for a wholesale food distribution company to know their true profit from the sale of an item purchased from, or sold to, another country said Morris, the company should record the profit or loss made on the difference of the foreign currency value between the date of the original transaction and the settlement date, separately from the actual profit or loss from the sale of the item itself.
“Both parties have to deal with elaborate and often constantly fluctuating exchange rates which then leads to separate profit or loss issues.”
He cites an example:
A U.S. vendor sells goods to a Canadian company for CA $105.00. At the time of sale, CA $105.00 equals U.S. $100.00, however when the Canadian client settles the account in Canadian dollars, the exchange rate has dropped and the U.S. vendor receives only U.S. $95.00, an exchange loss of U.S. $5.00.
The transaction gets increasingly complicated. “While the U.S. vendor should recognize the exchange loss of U.S. $5.00 separately in its current accounts,” he said. “If the U.S. $100.00 debt was still outstanding at the company’s year-end, and if at that time, the debt was worth U.S. $101.00, the U.S. company should show the U.S. $100.00 debt in its year-end balance sheet at the closing rate of U.S. $101.00.”
“In today’s borderless economies, companies can’t afford to ignore extraordinary profits and losses,” said Morris. “Edible Software’s foreign exchange module solves these accounting dilemmas for the wholesale food distribution industry.”
For more information about Edible Software’s new foreign exchange accounting module for the wholesale produce, meat seafood and grocery industry, call CEO Henri Morris, or Charles Butler, vice president of marketing, at 832-200-8000. Visit the company website at www.ediblesoftware.com.
FOCUS: wholesale food distribution accounting software, wholesale produce distribution accounting software, wholesale fish distribution accounting software, wholesale meat distribution accounting software, wholesale grocery distribution software
- Contact Information
- Charles Butler
- Marketing Vice President
- Edible Software
- Contact via E-mail
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