Help! We can’t get this to work properly. Where did we go wrong?
Make PO to buy Raw Mat (for production) on 7/26 in USD. Exch rate for that day is 10000:1 (USD:LCY)
8/2 goods arrive. Exch rate that day is 9000:1 (USD:LCY)
8/15 receive vendor invoice. Exch rate that day is 8000:1 (USD:LCY)
8/30 pay vendor. Exch rate that day is 7000:1 (USD:LCY)
The PROBLEM is I cant make Navision post the gain(or loss) of forex. There is a gain because at Receiving date, the FCY is more expensive than when we receive the vendor invoice and when we pay. So practically we have to pay less in LCY when paying the vendor on 8/30, thus it is a gain. For those of you who are in a similar situation, how did you setup Navision to reflect currency gain or loss that occurs due to the timing difference between when we make a PO and receive the goods, and when we receive the invoice and pay the vendor.
To backtrack to a very basic question, what exactly does the concept of currency gain or loss in Navision apply to? Does it apply to the above case?