Landed Costs different exchange rates

[Former Member]

Hi all,

a simple example:

1. GRPO with material costs - 2012-02-01 exchange rate 1.2

2. Landed Costs #1 when customs invoice comes in - 2012-02-02 exchange rate 1.4

3. Landed Costs #2 when freight invoice comes in - 2012-02-03 exchange rate 1.0

Since the function Landed Costs cannot deal with different exchange rates, the exchange rate of GRPO plus the exchange rate of the latest entered Landed Costs count.

Is there a best practice on how to deal with this scenario?

Because usually there are not only one or two days between these invoices, therefore there could be some huge differences between exchange rates.

Thanks in advance

Sebastian

[Former Member · Accepted solution]

Hi,

In landed cost process, the system should allocate expenditure (in local currency) to cost of received goods based on Landed Costs Alloc. Account. That mean all expenditure will be collected and input into AP invoice with G/L account is Landed Costs Alloc. Account. These invoices with different exchange rate do not affect to Landed cost because we use Local currency for allocation. Based on AP payment date' exchange rate, system will post gain/loss to defined account in Determination set up.

Hope this helps,

TVSon