Final answer:
To record opportunities in USD and EUR, a firm should use a multi-currency financial system for conversions and engage in the foreign exchange markets as necessary. The firm should document exports, imports, and income payments in the respective financial columns to manage different currency transactions effectively.
Step-by-step explanation:
Organizations that need to record opportunities (opps) in different currencies, such as USD and EUR, should implement a financial system that can handle multiple currencies. This system would allow for the conversion of sales and costs into a standard reporting currency for the business. In a scenario where a Chinese firm is exporting goods and earning U.S. dollars, but requiring RMB (Chinese yuan) for local expenses, the firm must engage in the foreign exchange markets. Here, they would act as a supplier of U.S. dollars and a demander of Chinese yuan.
To accurately record these transactions, firms should take the following steps:
- First focus on goods and services by entering the dollar amount of exports under the Export column.
- Input the imports of goods and services under the Import column.
- In the Export column, next to Income payments, note down the financial inflows coming back to the organization's home country.
These steps will enable the firm to keep track of its international transactions in different currencies efficiently and accurately.