Hi,
Can someone tell me how I can change the currency rates for the part cost.
At this moment the part cost is calculated based on the current rate but I want to calculate it on a standard rate which is fixed for one year.
Thank you.
Solved
Currency rate part cost
+2Best answer by Nick A
In that case it’s much simpler, because you are uing standard cost. All you need to do is copy cost set that holds the current standard cost (say for STD_2020), and then copy into a new cost set (say STD_2021), then export all the parts with their costs. Revalue those you need to, and then update the STD_2021 cost set with your new standards for the year. The calculation of parts and their currency rates should be done outside the application (e.g. Excel) and then update the parts in the new cost set.
This then gives you continual historical cost set references and analysis capabilities.
The above IS a manual process for revaluaing the standards for all parts, but once updated, you can then run the revaluation process to see the impact of the cost set change.
This topic has been closed for replies.
I’m using IFS9
Nav:>>Accounting Rules>Currency>Currency Rate Type
in the currency rate type , select rate type category to be normal.
Nav:>>Accounting Rules>Currency>Currency Rate
in the currency rate , enter valid from date for the required rate.
+2Hi Nagah,
I have add the Plan rates and have the normal rates. So 2 currency rate types in IFS.
I want the financial transactions against the normal currency rates but the part cost calculation against the Plan rates. I would like to know how I can set this up.
Marlon,
What inventory valuation method are you using? Depending on what makes up the cost and how you are valuing will depend on the best approach to take for valuing at different currency rates. It sounds like you are using standard cost, and if so, this is pretty straight forward. Let me know and I can advise the approach.
Regards
Nick
+2Hi Nick,
I am using the standard cost. We calculate one per year the new standards.
During the year we develop new products which have the components as an existing product. I would like the price of the component against the same currency as the standard.
Regards,
Marlon
So just to clarify, you have a new standard for inventory parts calculated / loaded annually. You then may have new products that will have the same component in existing products that have already been revalued, but use it in a new part structure. The component is exactly the same part in both old and new product structures, the difference being the currency rate used to calculate the standard for old versus new part. e.g. below.
Part A (existing product) std cost = £100
- Component 1 = £75 (calculated using ex rate X)
- Component 2 = £25 (calculated using ex rate X)
Part B (new product) std cost = £110
- Component 1 = £80 (calcualted using ex rate Y)
- Component 3 = £30 (calculated using ex rate X)
Does the above roughly illustrate what you are doing (very high level)?
+2Yes that is correct!
I would like to have the same currency rate for component 1 because it is the same part, so I want the same standard cost.
In that case it’s much simpler, because you are uing standard cost. All you need to do is copy cost set that holds the current standard cost (say for STD_2020), and then copy into a new cost set (say STD_2021), then export all the parts with their costs. Revalue those you need to, and then update the STD_2021 cost set with your new standards for the year. The calculation of parts and their currency rates should be done outside the application (e.g. Excel) and then update the parts in the new cost set.
This then gives you continual historical cost set references and analysis capabilities.
The above IS a manual process for revaluaing the standards for all parts, but once updated, you can then run the revaluation process to see the impact of the cost set change.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.