Inventory value for orders that have had a deposit and final payment with different exchange rates

Thirsty

Hi

Lets say we order 100 units USD1 each.

A 50% prepayment is made when the exchange rate is 75c - AUD66.66

The final payment is made and the exchange rate is 70c - AUD71.43

Total cost AUD138

 

Does the inventory show as a weighted average value of those 2 exchange rates - total cost AUD138 and 1.38 each?

 

Many thanks

Mike_James

Hi @Thirsty , welcome to the forum.  

 

The value of the entry to inventory will be the order(/bill) value converted at the exchange rate assigned to that transaction. 

 

Any difference in the rates used on the deposit or final payment will be accounted for as realised currency variances