We are currently implementing LX and we have an interesting problem that we are trying to resolve without resorting to modification. LX only supports one currency / rate type for cost (MLT800). Obviously it does support multiple company currencies. What this means is that when the company currency does not match the global costing currency, a currency translation takes place.

This translation is taking place at the spot rate which is changed each day, so for a given item, the amount hitting the inventory account changes each day. This results in the requirement for a monthly inventory revaluation, similar to AP/AR revaluations, but there is no Inventory revaluation function in LX.

If my Global Currency and company currency match, the posting works:
MLT800 Cur: HUF Rate type SPOT
Company Cur: HUF
Vendor Cur: HUF

U Transaction
DB Inventory 15197
CR Accrued Liability 15197

AP Inv Entry
DB Accrued Liability 15197
DB Tax 5000
DB PPV 4802.38
CR AP 25000

But if these rates are different the following results:
MLT800 Cur: LOG Rate type SPOT Exchange Rate 250/1
Company Cur: HUF
Vendor Cur: EUR
Exchange Rate HUF/EUR Spot Type 287.7

U Transaction
DB Inventory 17488.71 (std cost/Glb Exchange to Trans)*(Exch to Co)
CR Accrued Liability 17488.71 (15197/250)*(287.7) (std cost/Glb Exchange to Trans)*(Exch to Co)

AP Inv Entry
DB Accrued Liability 17489
DB Tax 5754
DB PPV 11281
CR AP 34524

Now add the complication of changing exchange rates each day and my Accrued Liability account will not net out based on exchange rate gain/loss and the valuation of my inventory will not equal quantity * standard.

Has anybody addressed this in the past? Any help would be much appreciated.

Bryn Kahrl
Process Engineering Manager
Eagle Ottawa, LLC

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