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UMB Gain/loss from revaluation during MIRO

Dear Experts,

I am having the following scenario:

1. Purchase Order for RAW Material R101 for 4.4 KG, prices is 254.01, exchange rate from USD to HKD = 7.78770

2. On 2011.04.29, Goods Receipt posted with Posting Date 2011.04.11. The following entries are generated:

i. Debit Raw Material Inventory Account +1978.16 HKD

ii. Credit GR/IR Clearing Account -1978.16 HKD

3. On 2011.05.03, 2.2KG of the RAW Material R101 has been issued for Production.

4. On 2011.05.10, the operator post the Logistic Invoice Verification MIRO with posting date at 2011.04.29

The following entries have been generated

i. Credit Vendor -1978.15HKD

ii. Debit GR/IR Clearing Account +1976.16HKD

iii. Credit Raw Material Inventory Account -0.01HKD

iv. Debit Raw Material Inventory Account +0.01HKD

v. Gain/loss from revaluation (UMB) -0.01HKD

If no Goods Issue have been posted before the Logistic Invoice Verification, the following occurs.

i. Credit Vendor -1978.15HKD

ii. Debit GR/IR Clearing Account +1976.16HKD

iii. Credit Raw Material Inventory Account -0.01HKD

Does anyone know why if there are Material Document posting before the Logistic Invoice Verification, the exchange rate difference is posted to the "Gain/loss from revaluation" account.

Another question is how come the rounding behaviour for MIGO and MIRO is different. In this scenario, both the Material Document (MIGO) and Logistic Invoice Verification (MIRO) are posting in April and hence the exchange rate is the same. But during MIGO the value is rounded up where as MIRO the value is rounded down.

Thanks

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2 Answers

  • Best Answer
    Posted on May 30, 2011 at 05:03 PM

    Refer note 518485 Q&A no.8

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  • Posted on May 18, 2011 at 08:45 AM

    Hi,

    In your system, current period is May and previous period is April.

    GR has been done in April. (Previous Period)

    GI has been done in May. (Current Period)

    LIV has been done in April. (Previous Period) - Since Current Period is May and you are posting LIV in April (Previous period) so price change entry (UMB) is getting posted.

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