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May 27, 2010 at 01:12 AM

Forex difference settlement


We bought an asset from the UK and they were received in March. A GRIR for Rs 100000 was processed. During April when a payment was made there was a foreign exchange difference of Rs 2000 , this was setlled against asset .

Will the amount of Rs 2000 be credited to the Asset or the amount of Rs 2000 should goto Forex gain or loss.

Please check and let me know how the forex difference should be adjusted.What is the accounting entry to be posted.

Further Info:

The issue is that the asset was purchased against a WBS .Then during the GR and IR the cost got captured against WBS.

Now when the payment was made the exchange rate loss got captured against the WBS.

This WBS has to be settled to the AUC, in this case the loss also will get settled.

Please advice how to deal with it.



Edited by: mysap query on May 27, 2010 7:32 AM