FC Exchange Difference

[Former Member]

LC is CAD and FC is USD. I created GRPO with 1.11 rate. Transfered this GRPO to AP Invoice with exchange rate 1.12.

GRPO created JE with Received Not Invoiced account 300 USD. AP Invoice JE is USD 297.32 on Received Not Invoiced account and the exchange rate diffs gone to the inventory account with USD 2.68.

I manage Inventory by WH and defined Exchange Rate Diffs account their, but in this case this gone to Inventory acct.Why?

How to change it?

Thanks,

Olga

[jitin_chawla]

Hi,

Please go through the Continous Stock.pdf on the Service Market Place > Documentation Resource Centre where the reported case is explained.

Extracts from the document :

Special Scenarios for A/P Documents

A/P Invoice based on a Goods Receipt PO u2013 Exchange Rate Differences

A difference in the local currency amount will be resulted due to an A/P Invoice for a

foreign currency vendor based on a Goods Receipt PO when the item price is defined

with a foreign currency and the A/P Invoice is connected to a different exchange rate.

There are three possible scenarios for this situation:

u2022 The quantity of the items copied from the Goods Receipt PO to the A/P Invoice

is less than or equals to their quantity in stock.

Since the actual inventory valuation changes in this situation, the Stock account

will be affected accordingly.

u2022 The quantities in stock of the items copied from the Goods Receipt PO to the

A/P Invoice are zero or negative.

Since there is no quantity in stock and the actual inventory valuation does not

change in this situation, the Exchange Rate Differences account will be affected

accordingly.

u2022 The quantity of the items copied from the Goods Receipt PO to the A/P Invoice

is greater than their quantity in stock.

Since the actual inventory valuation changes only for the existing

quantity in stock, the Stock account will be affected by the existing

quantity and the Exchange Rate Differences account will be affected by

the remaining quantity.

Hope it will help.

Regards,

Jitin Chawla

SAP Business One Forum Team

[Former Member]

Thanks for the answer.