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Former Member

Exchange rate issuses

Hi:

We have a scenario wherein

we have foreign currency

valuation issue. We sell goods to

our customers in foreign country.

In doing export sale order is

created long before delivery is

made.In between this time there

becomes fluctuation in exchange

rate. The rate at which invoice is

booked and payment is received

varies . We at first stage want to

keep exchange rate fixed from SD.

Expert opinion is required .

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5 Answers

  • Best Answer
    Posted on Jan 23, 2012 at 02:30 PM

    Hi:

    Let us assume you invoice your customer in USD and want collection in terms of INR or any other currency then i think problem will remain persistent. You need to post receipts in the currency with which invoice was raised. Even system would not do much for you.. I hope this clears you..

    Regards

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  • Posted on Jan 22, 2012 at 09:19 AM

    Maintain only one exchange rate at OB08 for exchange type M from / to currency

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    • Hi James,

      Finished goods sold to export customer >

      While creating the sales order ,system automatically pick the currency from currency table (TCURR) and let us say, there is fluctuation while doing the billing.

      There are 2 possibilities :-

      1. Business wants to post invoice at current exchange rate

      2. Business wants to post billing at Sales order rate

      Both settings are depends upon SD coping control settings

      Customization Path :- VTFA or Sales and distribution > Billing documents > Maintan coping control > select sales document to billing document > go to item details where you can find pricing exchange rate type

      Rgds

      Suma

  • Posted on Jan 22, 2012 at 10:12 AM

    Hi,

    I think best way to handle this scenario is to keep exchange rate fixed at SD level. You can do so by maintaining fixed exchange rate at sale order header level in accounting tab. Whatever exchange rate you give in there will be passed on to billing irrespective of date when billing was made or sale order was created. If there has been any exchange rate fluctuations between these two date of SO creation and invoice posting system will ignore them and will take the exchange rate maintained at SO date only. Hope this will help you.

    Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 22, 2012 at 10:22 AM

    Great input,but what about receipts when we go to post collections in system manually using F-28 system posts the transaction at current exchange rate ,hence there comes a difference of amount. Plz advise

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 23, 2012 at 06:02 AM

    In F-28 also there is option of giving the exchange rate give the exch rate as per the sale order and taken the incoming payment without any variance.

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