Price Difference due to exchange rate
Hello SAP Gurus,
I am new in doing configurations for SAP-MM module and I need your help.
Scenario:
During GR our exchange rate USD-PHP = 55.49
During IR our exchange rate USD-PHP = 55.325
because of this there is a price difference.
When the IR accounting entries came out, it resulted to this:
Cr. AP 2480.01
Dr. GR-IR Clearing 2487.40
Cr. Inventory 4.30
Cr. Price Difference due to exchange rate 3.09
Based on my reading:
Because we are using moving average price,
1. exchange rate difference is credit/debited to the inventory if it is within stock coverage.
2. exchange rate difference is credit/debit to a price difference account if it is out of stock coverage.
Now my question is:
What is the meaning of STOCK COVERAGE?
Your replies will be very much appreciated. Thank you in advance.
Stock coverage means to have at least as much stock as your invoice quantity is.
Thanks for the reply.