• From: Saudi Arabia
  • Registered: 12/04/2017
  • Posts: 6

Topic: Exchange Rate not working (if define manually)

we have newly setup  FA in our organization. We have defined conversion rates manually in Banking and General Ledger-->Maintenance--> Exchange Rates

Company Currency is Saudi Riyal 
and for USD
"Date to Use From:" 01-Jan-2017
"Exchange Rate:" 3.75

If we are making a Direct Purchase Invoice Entry from Purchase module for a supplier having currency in USD.
Item is also defined in USD for this supplier. but currency conversion is not happening when we are adding any item in the list.

Can anyone identify what I'm missing that currency conversion is not happening.
Kindly help.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Exchange Rate not working (if define manually)

Since both Supplier Currency and Purchase Invoice entry are in USD, there is no conversion needed. Make sure you have entered it in USD Amounts too in both cases. Hopefully, if you pay the Supplier from your USD Bank Account, then too there will not be any exchange rate conversion. Only in the Balance Sheet and P&L Account will it reflect in Saudi Riyal after conversion. Make sure your exchange rate is entered preferably a day earlier (may be there might be some glitch there - but no one has complained so far).

apmuthu's Website

  • From: Saudi Arabia
  • Registered: 12/04/2017
  • Posts: 6

Re: Exchange Rate not working (if define manually)

Both Supplier and Purchase Invoice enter are NOT in USD.
Supplier currency is in USD but the company base currency is Saudi Riyal (SAR). The Purchase price of item is also defined in USD in Item master input screen.
so while making a direct Inovice, system picks the amount in USD but not converting in SAR when we are adding item in list.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Exchange Rate not working (if define manually)

At the time of making the Supplier Invoice entry in USD, there is no conversion needed even if the company currency is in SAR except for the GL entries that would get converted in the Purchases account - check the GL entries for the transaction after Purchase Invoice entry.

Again, when making payment in USD from a cheque drawn on a USD denominated bank account, no conversion is needed except for the GL entries on the purchases / stock inventory accounts - check them as well.

You should have an Exchange Variances Account assigned in Setup => System and General Setup that will be used for Balance Sheet, P&L Account and costing / settlement purposes.

Alternatively, if you entered the exchange rate manually, try to logout and login again and then make the Supplier Invoices and the Payments to Suppliers. This is assuming you are plagued with some browser cache - set the browser options to clear cache on exit.

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apmuthu's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Exchange Rate not working (if define manually)

Attached is a set of screenshots for a forex purchase invoice and the corresponding forex converted payment along with their views and GL entries.

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PurchaseInvoice_Txn_Screenshots.zip 122 kb, 4 downloads since 2018-01-22 

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apmuthu's Website

  • From: Saudi Arabia
  • Registered: 12/04/2017
  • Posts: 6

Re: Exchange Rate not working (if define manually)

Dear apmuthu

Thanks alot for instant reply for the query. as you always help everybody at this forum.

As you suggested, I now came to know that currency conversion will not be seen at the input screen as I was expecting . and it can only be observed at backened in GL enteries.

thanks  again.