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