I am looking for a answer to the exchange variance question for R12

  5. Q:  Variance: Why is the exchange rate variance not being charged to the Rate Variance Gain or Loss accounts?

In Payables, I entered an invoice with a user rate that is different from the exchange rate that on the purchase order.  The exchange rate variance is being charged to the PO charge account (the expense account on the distribution line on the purchase order).  I expected the exchange rate variance to go to the Rate Variance Gain/Loss accounts that I set up in Payables.

A:  If the PO distribution is an expense type, the rate variance gets charged to the PO charge account.