Hi,
During GR for a foreign curr(FC) against local curr(LC), the entry is :
DR Expense FC$100 LC$200
CR GR FC$100 LC$200
During LIV, the following entry are posted :
CR Vendor FC$100 LC$180
DR GR FC$100 LC$200
CR Expense FC$0 LC$20
Here the strange thing is that since this is due to exch. rate differences, why did it still post the difference back to the expense account and not exch. difference acct? If we want to change to exch. diff acct, how can we do so?
Thanks,
Teo