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Former Member
Dec 13, 2011 at 02:34 AM

Foreign Exchange difference posted to price difference account at MIGO

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Hi,

We have a problem regarding posting foreign exchange rate difference at the time of GR.

We are costing materials at the beginning of year, and purchases made during the year as per PIR will result in legitimate price difference which is posted to price difference account. Thatu2019s working alright.

Now, due to new business requirement, we maintained PIR in MXN (Mexican peso), & standard cost is converted in local currency USD as per exch. rate maintained in OB08.

Now, when we do GR, the difference of foreign exchange at the time of Std. cost & GR date is posted to Price difference account instead of foreign exchange account. For eg. Std .cost of material A is 1000 MXN, and GR cost of material X is also 1000 MXN, however corresponding USD is different because of different foreign exchange rate.

Will appreciate if someone can suggest on how can we post it to exch.rate diff.account instead of price diff. acct. ?

Thanks,

Nirav