FM Exchate rate diferences Invoice VS PO

[renfeproyectoau]

Good afternoon,

We are working in a public project and we are facing the following problem:

Due to the exchange rate an invoice is bigger in local amout (EUR) than the PO. In other projects we where moving that difference to another P&L account out of budget. However here in this project they are telling us that due to Legal requirements all the amount of the budget has to consume budget. Any trick?

Thanks in advance.

regards,

Daniel

[iklovski]

Hi,

So what is the problem exactly? If an invoice is bigger than a PO and the exchange rate is accumulated on the budget-relevant account, it would simply consume more budget, than PO's commitment and that's it.

Regards,

Eli

[renfeproyectoau]

Hello,

I did not explanied my self.

In this public company the PO is considered as the "legal commitement". That means that the invoice cannot be bigger in any case than this legal commitment it is related to.

Any idea?

Regards,

Daniel

[iklovski]

So, should it or should it not?

You said that you might have an invoice with exchange rate differences exceeding PO, but on the same time, the client wants the PO not to be exceeded?

[renfeproyectoau]

Hello,

The fact is the an invoice could excede the amount of the PO due to the exchange rate, but due to the requiremenmt of the Client, this is not possible as the PO has to be equal or bigger than the invoice related. Is there anyn chance to increase / update the value of this commitment of the PO? I know it is a complex question ....

[iklovski]

Of course, you can update PO, but only manually, i.e. there is no standard mechanism, which would increase PO's commitment (and PO's amount itself) following invoice receipt. I would suggest your client to work with EMF (reservations) and treat them as 'legal commitments', while PO would be considered as a logistic document, consuming this commitment. In this scenario, you will have much more flexibility.

[renfeproyectoau]

Hello,

We are already using the EMF. It si mandatory and it works here like what they call: "budget commitment" (Internal approval for an expense). All budget line just can be consume firstly by a EMF.

Regarding procurament, the PO (Legal commitment. Once when we have sign a contract) has to have always related a EMF. Then it is when we are facing the problem with the invoice.

Regards,

Daniel

[iklovski]

Hi,

Well, in this case, your client has to introduce internal procedure, where PO amount will have to be modified each time there is 'overconsumption' by the invoice. It does not seem very efficient from procedural point of view, but I cannot see what could be done otherwise. In any case, it is not a question of PSM-FM functionalities. You might try and ask similar question in MM forum, but I hardly anticipate any result.

Regards,

Eli