Encumbrance entry when forex rates differs between reqqusition and order
We have encumbrance from purchase requisition level. we raise requisitions in foreign currency. Issue is
Requisition Raised: 27-May-09 and exchange rate is 1 GBP=1.8 USD and system encumber at 1.8 and passes encumbrance journal
Purchase order date: 31-May-09 and exchange rate is 1GBP=1.9 USD--- how system handles the exchange rate difference
Please suggest me on above
Thanks,
Murali