Exchange Rate Concept. e.g. - 1.00 EUR = 67.1500 INR
Can anybody please explain the concept of exchange rate.
How calculation is made of exchange while currency conversion.
For example -
Current exchange rate - 1EURO = 67.1500 INR
Import Purchase order quantity - 50
Unit Rate = 463.
Please brief me on Currency Exchange Rate in details.
Additional info is required on it.
Thanks in Advance.
we have three types 3 types of exchange rates basically ( but can have as many exchange rates ) .
buying rate , selling rate , average rate ( M ) .
exchange rate will occur in import purchase or export .
import procurement .
1.when we create PO for forgein vendor , the default exchange rate ( M type ) will be displayed based on the document date .
2.when the material reaches to customs , duties will be calculated based on customs exchange rate ie ( M type rate ).
3.GR willbe valuated with the exchage rate which is attached to the material document type .
4.invoice will be valuated with the exchange rate based on the invoice document date .
5.payments to vendor wiii be done with spot rate
all sales will be valuated with selling rate .
u can see all types of exchange rates in OB08