Can the value of the stock change if an exchange rate is changed?
Is the value of the stock affected in any way if the exchange rate is changed or is it valuated to the exchanged rate at the time of the goods movement? We are using Moving average price.
Sumit Talukdar replied
Exchange rate can affect valuation at the time of GR and MIRO. Once these two are done, then there is no effect on the stock value even if exchange rate changes.
Now, at the time of GR and MIRO also, you can choose whether you want to to use the PO exchange rate or not (if you check the 'Exchange rate fixed' indicator at PO header).
If you choose to take the prevailing exchage rate at the GR / MIRO time then there is a exchange rate difference. Now, it depends on your configuration whether this difference will be loaded on material to change the stock value or will be posted to a different "Exchange Rate gain/loss account". This configuraion can be done from SPRO>IMG>Material Management> Logistics Invoice Verification>Incoming invoice>Configure How exchange rate differences are treated
hope it helps you.