Exchange rate Fluctation for Import

[Former Member]

HI Expert

i would like to know standard exchange rate fluctuation if its occur while import purchase and other charges like CHA, transporter, wharfage we dnt know at the time of creation of PO.

So for this how u people map this scenario correctly

Remark

MY release strategy is finl indicator

Regard

Nabil

[former_member218067 · Accepted solution]

Hi,

Exchange rates keep on changing, when you do MIRO the exchange rate differences account gets hit with following keys

Exchange Rate Differences Materials Management(AVR) (KDG)

When you carry out a revaluation of single-level consumption in the material ledger for an alternative valuation run, the exchange rate difference accounts of the materials are credited with the exchange rate differences that are to be assigned to the consumption.

Exchange rate differences in the case of open items (KDM)

Exchange rate differences in the case of open items arise when an invoice relating to a purchase order is posted with a different exchange rate to that of the goods receipt and the material cannot be debited or credited due to standard price control or stock undercoverage/shortage.

Differences due to exchange rate rounding, Materials Management (KDR)

An exchange rate rounding difference can arise in the case of an invoice made out in a foreign currency. If a difference arises when the posting lines are translated into local currency (as a result of rounding), the system automatically generates a posting line for this rounding difference.

Exchange Rate Differences from Lower Levels (KDV)

In multi-level periodic settlement in the material ledger, some of the exchange rate differences that have been posted during the period in respect of the raw materials, semifinished products and cost centers performing the activity used in the manufacture of a semifinished or finished product are debited or credited to that semifinished or finished product.

If you dont want these account to hit then the only way is to change PO before IV and post with current exchange rate

Thanks

Diwakar

[Former Member · Accepted solution]

Hi expert

If i also change the Purchase order, then the price goes up from 48 to 5 $ , then in ths case what i do and i would like to include my other point also my charges which are paid against for Freight, port charges, i dnt know the exact charges at the creation, how should i map, should i go for unplanned delivery cost and assign different unplanned delivery cost.

Regard

Nabil

[former_member218067 · Accepted solution]

Hi,

For import PO this is common issue across all countries where the custom clearing , freight charges are unkown,

Its the business decision to decide if they want to treat it as unplanned delivery cost or modify PO and add these charges

Thanks

Diwakar

[former_member187989 · Accepted solution]

>

> Hi expert
> 
> 
> If i also change the Purchase order, then the price goes up from 48 to 5 $ , then in ths case what i do and i would like to include my other point also my charges which are paid against for Freight, port charges, i dnt know the exact charges at the creation, how should i map, should i go for unplanned delivery cost and assign different unplanned delivery cost.
> 
> Regard
> Nabil

You can do invoice without purchase order using MIRO,

for this Activate direct postings to g/l account & material accounts.

If you want frieght,port charges to expenses,use relevant g/l accounts in g/l account tab or

If you want entire delivery costs(freight,insurance,clearing charges etc.,) add to material cost,

in material tab,enter material,total value,valuation type.

or

Do subsequent debit for freight vendor.

Unplanned delivery cost

If you want to go costs to unplanned delivery cost,you can configure for unplanned delivery cost to a single g/l account or distribute it to invoice line items,for this you need to configure "How unplanned delivery costs are posted" in the path MM>LIV>Incoming invoice.

In OBYC,for transaction key 'UPF' assign g/l account for unplanned delivery cost.

If you want to distribute to invoice line items,it will add to material cost.

Apart from above,how your client/customer wants accounting effects to be in their books.

Edited by: Jeyakanthan A on Apr 29, 2011 1:40 PM