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Apr 02, 2015 at 04:11 PM

Exchange rate fluctuations in billing


Hi Gurus,

We have the following scenario and am looking for guidance-

We get our daily exchange rates from Reuters (so on April 2nd we load the file in the morning with latest exchange rate of 1st April).

Suppose business raises an invoice today (april 2nd) in GBP then the exchange rate (for group currency USD) will be taken as that of april 1st (since this is the most recent available by them)

Now consider on 10th business wants to cancel the same invoice (now system has exchange rate available for 2nd also) and system takes this exchange rate for invoice cancellation.

Since the rate for 1st & 2nd might be different, hence there is a exchange rate gain/ loss which comes up, even when A/r is zero (since the invoice was cancelled)

I am looking for suggestions as to how can this be handled, is there a best practice for handling this (since this should be a very common scenario)