Adj Exchange Rate doesn't revalue Inventory

ajmalsherif

Hi

some help please :-k

say an Itemis purchased and invoiced in euro's but supplier hasn't been paid.

During this period there is a change in euro rate against sterling. I am aware that there will be a gain/loss against Detailed vendor LE after running the Adj Excg rate routine but...the Item value doesn't change neither does the Item LE or Value entry. Shouldn't it?

idiot

The Adj. Exchange Rate routine will revalue the amount owing to vendor, it will not revaluing your inventory...
For inventory revaluation you need Revaluation journals...

ajmalsherif

thank you

ssingla

Do not do this as this is not consistent with the accounting rule except and unless local laws require it.

The exchange rate fluctuation is a financial exp. not related to purchase of goods.