Currency Rate Updation in PO | IFS Community
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Currency Rate Updation in PO

  • 16 August 2021
  • 13 replies
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Userlevel 6
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Hi Team,

I have raised a PO against an US supplier and set currency as INR on PO Header level since I will be paying the supplier in INR.

Now the total amount is calculated as per the Rate defined by me in Currency Rates window.

Now the scenario is after the PO is confirmed and when we register arrival, the currency rate needs to be updated as per the new rate.

How to update existing currency rate in a PO which is in “Confirmed” status?

Note: I am using Apps 10

 

 

 

 

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Best answer by Malgorzata Palatynska 16 August 2021, 17:13

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13 replies

Userlevel 5
Badge +9

Hi Rakesh,

 

please explain why do you want to change currency rate in PO ?

When you register PO arrival the currency rate is taken from arrival date.

If you enter the right arrival date then the correct currency rate should be taken.

 

Best regards,

Małgorzata

Userlevel 6
Badge +8

Hi @Malgorzata Palatynska

 

Thank u so much for the reply.

Just curious how correct currency rate will be updated as per the right arrival date?? Is it standard procedure or do we need to make any basic settings for it?

 

Thanks,

Rakesh

Userlevel 7
Badge +15

Hi @Rakesh ,

If you have not defined specific rate on company level or 
 


or on supplier level
 


General rates ​​​will be fetched and no extra setup is not needed as this is standard process.

Userlevel 6
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Thank u so much @Xavier Fernando 

Userlevel 5
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Hi Rakesh,

 

as I know this is a standard functionality in IFS Application.

In the Register Arrival window you can enter an arrival date. According to this date the system derives currency rate.
If the arrival date stay empty, the system takes currency rate from sysdate.

 

Best regards,

Małgorzata

Userlevel 6
Badge +8

Hi @Malgorzata Palatynska @Xavier Fernando 

 

The Currency Rate is not getting updated for me as per the right Arrival Date. 

In the Register Arrival window when I am entering todays date the system is not able to update the currency Rate.

The amount is getting calculated as per rates defined in Currency Rates window.

 

 

As per todays date the currency rate is 1 CHF is 79.99 INR.

But in PO it is not getting updated. It is showing 77.7

Request you to please help me on this.

 

Thanks,

Rakesh

Userlevel 7
Badge +12

Yes, your arrivals/receipts are booked with current currency rate as per currency rate table. Why do you need to change rate on the PO itself?

Userlevel 6
Badge +8

Hi @Adam Bereda 

 

The scenario is I want to update the currency rate as there is a difference in currency rate when PO is Raised and When goods are received.

 

So where can I update the currency rate??

Userlevel 7
Badge +12

Hi, Rakesh, 
You did not answered my question. What would be the PURPOSE of changing currency rate on PO? What could you gain from it?

The only useful result I can think of would be to adjust commitment amount on project activity, if PO is related to Project. 

it is perfectly normal that currency rate from PO placement, good arrival, invoice arrival and invoice payment are different and system is dealing with that - arrivals are booked with proper rate, Invoice is matched with receipt at proper rate, and finally currency difference at payment is calculated and booked.

Userlevel 7
Badge +11

Typically, the accounting currency rate is driven by Finance, meaning its not something a receiving person would enter.  

Provided the rates are updated periodically the arrival transaction will have the “appropriate” rate from a finance perspective.  Some clients update the rates daily, others update less frequency. 

Then when you process the supplier invoice you can enter a revised rate or use the defaulted rate. 

Then at payment (depending on payment method) we can enter the final rate at time of payment.  

Userlevel 6
Badge +8

Hi @Adam Bereda @Thomas Peterson 

 

Thanks both of you for the detailed explanation.

 

So just to revert back what I understood from your explanations is:

A finance person can update the Currency Rate in Manual Supplier Invoice window after the goods are receipt as per the required Currency Rate ??

 

Thanks,

Rakesh

Userlevel 7
Badge +11

Yes - Provided the currency code is different from the accounting currency  (my company is USD the invoice was CAD) you can enter nearly anything in the rate. As shown below. Note the 854 rate was just an example USD / CAD is closer to 1.25. 

 

 

Userlevel 6
Badge +8

Thank u @Thomas Peterson