If a purchase order is raised in a different currency to the job in one month, and this order is to be invoiced out to the customer
Then that is invoiced in a different period, thereby the exchange rate has changed.
If you then goto the job, you will find the cost amount is based upon the exchange rate when the invoice was posted, but the price has stayed based upon the original exchange rate when the order was created.
Has anyone else come across this? and if so, any ideas how to avoid this?
Many thanks
Andrew,
Yes, this is standard. Let’s walk through your example:
Purchase Order - Currency EUR - Unit Cost 1.00 EUR Date 4/1/21 Exchange Rate to USD 1.12345
Purchase Order PAID on 4/5/21 with an Exchange Rate to USD of 1.17449. The Foreign Exchange loss will be booked to FX Gain/Loss GL Account.
As for the Job, the Job is updated when the Purchase Invoice is paid. The Job Planning line affiliated with the PO linked updates Unit Cost but the Unit Price will not update. Their is not affiliation to the FX change and posted Invoice. If I enter a Unit Price of 25.00 it will stay the same regardless if my Unit Cost goes up or down. This is the Unit Price I will use on billing the Job planning line.
I am not sure if an Addon/APP will solve this. I don’t recall if this is addressed by the ISV. You might consider a workflow message or Power Automate process notifying a User when the Unit Cost changes on the Job Planning Line they can check Unit Price.
Hope this helps.
Thanks,
Steve
