Can the value of the stock change if an exchange rate is changed?

[Former Member]

Hello,

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.

Regards

Ann-Sofie

[Former Member · Accepted solution]

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.

[deiva]

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.

1.If the exchange rate entered in PO is checked as a fixed in the PO - Header data - Invoice, then this value will take into consideration in GR & LIV. The stock is valuated at this price only. This won't consider the exchange rate maintained in the system in OB08.

2.If it is not fixed in the PO level, then it is valuated by the value maintained in OB08.

[former_member335885]

Hi,

The value and qty of the stock wont change but at the time of account determination it takes different accounts with Exchange Rate differences transaction event key.

Thanks & regards,

Kiran

[Former Member]

Hi,

At the time of GR, the material will get valuated based on the Exchange rate maintained at the PO, if there is any differences during the the MIRO, it gets added to the material cost to the extend of stock availablity, the difference will be posted to the adjustment account/price variance

Regards

Merwyn