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Exchange Rate fixed

Former Member
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Please let me know the use of "exchange rate fixed" indicator.

If it is marked in the PO then what is the accounting entries at the time of GR and IR if the vendor currency is different from material currency.

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Answers (4)

Answers (4)

Former Member
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Thanx

Former Member
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Hi,

The accounting entries will be

at GR

Dr.Inventory - Qty X Price (based on exchage rate of PO creation date)

Cr GR/IR

at IR

Dr GR/IR

Cr.Vendor a/c - value same as the GR

There will not be any postings to the Exchange Difference account.

Regards

Merwyn

former_member192897
Active Contributor
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The Echange Rate Fixed Indicator Determines that the exchange rate used for currency translation purposes calculated or entered in the purchasing document is fixed.

If you fix the exchange rate, the purchase order currency and the exchange rate cannot be changed during invoice verification.

No, they wont change.

Regards,

Ashok

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1.If u mark the exchange rate as a fixed in the PO itself, then the material is valuated with this price only at GR & IR.

2.This won't consider the exchange rate maintained at FI OB08.