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 · Accepted solution]

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

[Thirsty]

Hi Mike

Thanks for your reply.

Thirsty