Skip to Content
0
Former Member
Apr 20, 2010 at 09:01 PM

MACHR Rates

14 Views

Dear Guru's,

Our MACHR costs are updated normally once a year, at the moment of setting up the standard prices for the next year.

Those MACHR are entered in VEF, but converted to USD ( our Controlling Area currency) internally.

At the moment of performing the confirmations for the production orders, MACHR are charged against the order based on the routing rates ( Here the same exchange rate is used which is at the moment of costing). When we have an important currency depreciation or appreciation this generates hugh differences ( for example- at the time of budget the rates were 1 USD per 3.3 VEF, by the end of the year the rate was 3.85, that represents almost a 20% deviation).

What can we do to have the actual MACHR entered at the months xrate, rather than at the budget rate? Knowing that the u201CPu201D x-rate type is updated every month, should we do an update of the MACHR cost every month? How will this impact the standard cost of the materials?

Please help / advice.

Best Regards,

Yasmeen