Weighted Average unit cost

[husni]

Dear list,

How can we avoid, weighed average unit cost being updated with the exchange rate varience amount, during the voucher match (P4314) for foreign currency purchase orders.

Currently, when a PV entered for foreign currency OV, it creates a record in item ledger file for the exchage rate variance and adjusting the weighted average unit cost for the item. Our finance guys say it is against the IAS. They say the unit cost must be adjusted only at OV but not at PV.

Thanks,

 

[BDarr2]

Look in UDC 40/AV. Change description 2 to "N" for P4314

 

[husni]

Thanks Brad, your solution works perfectly.