Best Practices for Foreign Currency Invoices,Payments
Summary:
Hi, we have a scenario where we are creating EURO currency PR, PO, GRN, Invoice and Payment. Ledger currency is non EURO. For each document the exchange rate varies, refer below example:-
Document Type | Rate |
|---|---|
PR | 4.0000 |
PO | 4.1000 |
Receipt | 4.2500 |
Invoice | 4.5000 |
Payment | 4.7500 |
I want to understand what is the best practice to record such documents
- Shall we use same rate for PR,PO, Receipt, Invoice and for Payment, payment date rate?
- Shall we use document date rate for all above documents?
- Whether Exchange rate variance on PO and Invoice to be recorded on Expense/Inventory account or Exchange rate variance Gain/Loss account?
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