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Former Member
Oct 25, 2011 at 08:26 PM

Exchange difference on invoice posting

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Hi experts,

Warehouse has done GR for material and system has generated the following transaction.

Inventory Dr. Rs. 10,000

GR/IR a/c Cr. Rs. 10,000

When finance posted the invoice system generated following transaction based on less foreign currency rate.

GR/IR a/c Dr. Rs. 10,000

Vendor Cr. Rs. 9,700

Inventory Cr. Rs. 200

Exch. Diff Cr. Rs. 100

My point is that based on exchange rate difference system calculated the difference and reduced the inventory value, than how exchange rate difference generated?

Kindly help me to sort out this issue.

Thanks in advance.

Best regards,