Standard Costing - Break Down Variance FX Applicable 

The logic is based on the fact that standard costing is calculated as (Suppliers Home Cost/Capital Transaction Rate) plus freight and duty percentage component.

System settings

Use Cost of Goods Ledger = Yes

Use Rounding = No

Post Purchase Tax = No

Use Foreign Exchange = Yes

Use Standard Costing = Yes

Break Down Variance =Yes

Use Warehouse Masking = No

Scenario Changes

The freight and duty charges have been deleted from this example.  They form part of the standard costs.  These figures are used in the journal examples that follow. 

Capital rate= .45

Transactionrate = .47

Pricing

Receiving

Part A    FX 63.00            Aus 134.04         Standard Cost 148.75

Part B    FX 59.00            Aus 125.53         Standard Cost 139.31

Invoicing

Part A    FX 65.00            Aus 138.30         Standard Cost 148.75

Part B    FX 59.00            Aus 125.53         Standard Cost 139.31

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