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Import Procurement: Exchange rate:

Former Member
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Dear Experts <

Pls tell me what is the role of exchange rate while making an imported procurement:

1.Ex rate in PO: The PO is made in INR , item price is put in USD , the system calculates the other duties n taxes in INR based on the exchange rate prevailing in the system at the time og saving the PO .

eg. Basic Price USD 100,

system ex rate at the time of PO :45 hence basic price in INR 4500/-

tax ( say CVD) @ 10 % is INR 450/-

2.Bill of entry is done at the exchange rate prevailing at the time of unloading the goods at the custom house.

Basic Price USD 100

Ex Rate considered by customs : 50

Material price 100x50 =5000

cvd @ 10%= 500/- . Thiws is the duty paid to the customs (NOT Rs 450/- as in PO) & hence this

amount is MANUALLY booked in MIRO as planned delivery cost.

3. Goods Receipt: GR is made against the PO with ref to the customs MIRO:

Here the cost of goods is taken from PO ie Rs 4500/- & tax as Rs 500/-

4. Payment to the import Vendor : MIRO is done in USD.

Goods Cost : 100 USD

Ex Rate in the system at the time of making this MIRO : 55/-

The system in this case debits the cost of goods in INR by a difference of 55-45 ie INR 1000/-

I am confused as in what should be the exchange rate in what document & what is the actual material cost in INR .

Pls give ur opinions.

Regards

Anis

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi

system unless entered manually during ME21N or during MIRO takes the value of Exchange rate fromthe reference table OB08 only no where else. You may try all combinations during your PO creation it will refer the OB08 rate only since we can not enter the exchage rate during MIGO.

Similarly it will refer the OB08 table for the exchange rate of the day if the table is updated regularly on a day to day basis.

Regards

Former Member
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hello samuel !

do u mean to say that wen u do a MIGO , the stock account will be updated with an exchange rate maintained in the system at the time of MIGO?? & not PO ??

Former Member
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Hi

System picks up exchange rate type M for all documents in MM. Based on exchange rate maintained in master, system picks corrosponding exchange rate while posting document.

You have choice to decide exchange rate type for MIRO.

Regards,

NNK

Former Member
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No answers??

Former Member
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experts pls reply