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Why Receiving uses TO Currency and Costing uses Shipping Currency for Conversion

edited 6:17PM in Costing

Summary:

We have a Transfer Order from US to India with Transfer Price in EURO.

  1. The Cost in US is 1 USD and markup is 20%
  2. Transfer Price is EURO is 0.96 as the Spot Rate is used in Documentation and Accounting Rules with 1 USD = 0.8 EURO, so Transfer Price is 1.2 USD or .96 EURO.
  3. When the TO is received in India, the receipt is evaluated using EURO to INR Conversion with Spot Rate of 1 EUR= 125 INR, so Receipt Entries are:

4) When we do the Putaway for the TO, the Cost Entries generated are evaluated using Shiipin Org Currency USD to INR with Spot Rate: 1 USD = 90 INR:

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