Business Scenario with Accounting Entries for exchange Rate differences.

Scenario: A Purchase Order is created with Currency USD where the company code currency is SGD. The exchange rate in the Purchase Order is 1.500.

              PO Item Quantity = 10 and the Amount is 100 USD

              Post Invoice Receipt with exchange rate 1.500.

              Invoice Receipt is posted for 10 Units with the amount as 100 USD. Local Amount is 150 SGD as the exchange rate is still 1.500.

Now the exchange rate is changed to 1.600 in OB08 Transaction code. Then the goods arrived at the warehouse.

Accounting Entries:

Account Type	Transaction Key	USD Amount	SGD Amount	Debit/Credit
Vendor	KBS	100	150	Credit
GR/IR Clearing	WRX	100	150	Debit

Post Goods Receipt when the exchange rate is 1.600.

Goods Receipt is posted for 10 Units with the amount as 100 USD. Local Amount is 160 SGD as the exchange rate is 1.600.

Accounting Entries:

Account Type	Transaction Key	USD Amount	SGD Amount	Debit/Credit
Stock	BSX	100	150	Debit
Price Difference	PRD	0	10	Credit
Small differences from Exchange Rate	KDM	0	10	Debit
GR/IR Clearing	WRX	100	150	Credit

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Ganesh Padala