Bryn,
You have ventured into one of the more interesting areas of BPCS with the added complexity of changing exchange rates on a daily basis. Keep smiling though, because although it is interesting and complex, I never used the word impossible. I have worked with many global companies needing this same issue resolved - the only variable is the frequency at which the exchange rate is changed.
Much more information is needed to help you.
* What are your system parameters for Multi-currency, Costing and Inventory?
* What are all of your exchange rates for all of your currencies and rate types for a single day?
* How often do you revaluate your inventory from cost changes?
* How often do you update your standard costs and what is the procedure that you use when doing so?
You may contact me offline at either of the addresses below.
Best Regards,Â
Mike Sandor
e-mail:Â mpsandor@xxxxxxxxxxx
LinkedIn: Â
http://www.linkedin.com/pub/mike-sandor/12/437/25
--------Original Message - Bryn Kahrl wrote------------
We are currently implementing LX and we have an interesting problem that we are trying to resolve without resorting to modification. Â ÂLX only supports one currency / rate type for cost (MLT800). ÂObviously it does support multiple company currencies. Â What this means is that when the company currency does not match the global costing currency, a currency translation takes place. Â
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. ÂThis results in the requirement for a monthly inventory revaluation, similar to AP/AR revaluations, but there is no Inventory revaluation function in LX. Â
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 ÂExchange 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? ÂAny help would be much appreciated.
midrange.com
