no use of this batch job : Adjust Exchange rates

gete

Hi,
I need the adjust the exchange rates for posted entries , but I gone the batch job Adjust Exchange rates.
.
I think there is no use of this batch job : Adjust Exchange rates.
Because it is adjust ting the customer, vendor ledger entries only, it is not adjust value entries of the item ledger entry .

Then how to adjust the unit cost in value entries also after adjust the customer , vendor entries.
Which is the best method to adjust the cost also.

Note : I don’t want to create the credit memo , because the items what I received , it was consumed.
Share your ideas about this.

bbrown

Why would you want to adjust the inventory? Fluctuations in exchange rate have nothing to do with inventory value.

kapil4dynamics

Brown is right exchange adjust batch job has nothing to do with adjustment of Inventory Value. If it is consumed then applying Item charges to the receipt is the best option and run adjust item cost entries if u want to.

AdamRoue

The purpose of this routine is to correctly value your liability and debtors position in your home currency to reflect the movement of currency.

There is no point in adjusting inventory, these are valued at receipt and invoice on the day they come in. You would be breaking all accountancy practices to revalue your currency bought at a set exchange rate - just because the exchange rate has altered does not mean your inventory is financially worth more or less. This is infact considered fraud in many countries as it is mis-stating the value of a companies asset.

I suggest you talk to an accountant about this in your country to understand what you are asking.

gete

Hi Exerts,

i am throwing one example .

Our Local currency = INR

I created a purchse order on 04/01/ 09 , i created the purchase order in USD currency .

qty = 1 , Unit price = 1 $ , currency code = USD

on this date 1 $ ( USD) = 50 INR is the exchange rate in Navision currency exchange rate setup.

so i received the items and Invoiced on 04/01/09.

so vendor ledger entry updated as 1 $ .

when it comes Item value entry updated as 50 INR against this receipt .

After invoiced i realised that exchange rate is 55 INR , that means 1 $ = 55 INR on 04/01/09.

so that means here my inventory value changed according to my local currency .

so i need to update this one also .

how to change item value entry .

please correct me if i am wrong.

AdamRoue

Use a revaluation journal. Although currency is the cause it is irrelevant to the batch job you are talking about, it is a stadnard revaluation. Still means you need to understand the concept of the batch job.

ssingla

The inventory value should be equal to the invoiced amount which as per your example is INR 50. if your liability to vendor is increased/decreased due to exchange fluctuation that is Financial gain/loss and the value of inventory should not be changed. This is consistent with the accouting standard issues by the CA instiutute.

idiot

gete wrote:

Hi Exerts,

i am throwing one example .

Our Local currency = INR

I created a purchse order on 04/01/ 09 , i created the purchase order in USD currency .

qty = 1 , Unit price = 1 $ , currency code = USD

on this date 1 $ ( USD) = 50 INR is the exchange rate in Navision currency exchange rate setup.

so i received the items and Invoiced on 04/01/09.

so vendor ledger entry updated as 1 $ .

when it comes Item value entry updated as 50 INR against this receipt .

After invoiced i realised that exchange rate is 55 INR , that means 1 $ = 55 INR on 04/01/09.

so that means here my inventory value changed according to my local currency .

so i need to update this one also .

how to change item value entry .

please correct me if i am wrong.

Based on your description, you should Credit Note & Invoice again using the correct rates.