Commitment Value after partial GR

Question

Hi All,
Anybody have idea for below given scenario.
Query on Commitment cost
Eg: PO issued with cost of 1M USD.
       Based on current rate of 1.3, Commitment shows in local currency
1.3M SGD
       6 months later, 80% of PO can be GR.
       80% * 1MUSD = 800K USD
       Based on exchange rate of 1.25 at that point in time, 800K * 1.25
= 1M SGD
       Remaining commitment cost = 1.3M SGD - 1M SGD = 300K SGD.
       However, the actual remaining PO value in USD is only 200K USD.
       300K SGD vs 200K USD imply that the exchange rate becomes 1.5
Question:
1) Why is commitment calculated based on an arithmetic reduction in SGD
equivalent?
2) Can system take the remaining USD, convert it by the PO exchange rate
and use that as the remaining commitment in SGD? ie 200K * 1.3 = 260K
SGD
Urs,
RAJ

Answer 1

Hi Raj,
     The system does not calculate on the basis of the PO value. But the Commitment values are updated on the basis of the quantity. Please check the cost of 80% of the received quantity and the price per unit and convert.
Regards,
Neeraja