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