Import Procurement: Exchange rate:

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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