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Exchange rate update for existing transactions for foreign vendors and customers in sap b1

wale_adegbola
Participant
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Dear All,

I have a client that wants the system to change the price of an existing transactions for a foreign vendor or customer after they have updated their exchange rate in SAP Business one.

How can that be resolved so they wont have to reverse the previous transactions.

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BattleshipCobra
Contributor
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Hey Wale!

You can't modify the FC amount because this is the dollar amount recorded that you owe to the vendor.

But you can use Modules >> Financials >> Exchange Rate Differences to update your vendor AP to an exchange rate of a specific date.

This does not *change* the FC value on the invoice, but it changes the underlying value of the LC in your general ledger based on the current exchange rate.  The Exchange Rate Differences form also actually does the journal entries for you automatically to align the FC / LC amounts behind the scenes.

When you select the "Execution Date" it uses the exchange rates as of that date to align your FC values to your LC values on your ledger and writes off the gain / loss to your FX account.

Normally the vendor will not actually give you a new invoice, they will still say you owe $X FC, but the amount of LC you need to pay that FC will change with the exchange rates.

Does this help you to solve the issue?

Mike

PS. This will also revalue bank accounts in FC amounts which is nice, because the equivalent LC will shift over time when you store FC values.