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Exchange Rate Concept. e.g. - 1.00 EUR = 67.1500 INR

Dear Experts,

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.

replied

hi ,

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

export

all sales will be valuated with selling rate .

u can see all types of exchange rates in OB08

regards

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