Our client is has setup the functional currency as AUD but they want to have a reporting currency in

our client is has setup the functional currency as AUD but they want to have a reporting currency in USD.

So we are doing a proof of concept on setting up Reporting Ledger with USD.

I am analyzing the impact of enabling the reporting currency from SCM (INV/PO/OM) perspective.

We were discussing and got stuck with few points like

1. On the day of moving to Reporting ledger what would be the valuation/how is the valuation calculated for of all the inventory available?

2. Once enabled how is the valuation of the inventory account with change in conversion rates (ie assuming AUD->USD conv value as 0.8 today if the value is depreciated the next day to 0.78, how is the same accounted in reporting ledger).