Handling Exchange rate differences between a Purchase Requisition and Purchase Order

Dear Experts,

In any company which procures products/services from Suppliers who sit in different geography, we tend to create a foreign PR, which has a currency different from Functional currency. In such circumstances we use exchange rates to calculate the actual PR total in procurement currency.

Not always do the users create a PO on the same date that a PR is raised. Users do create and send a PO for this PR after 10 days of requesting also. In such cases the exchange rate on a Autocreated PO happens to be different from the one in PR. This leads to price variance and the PO is put on hold due to exchange rate tolerance limitations.