hi
In case of Import transactions , , Import of Raw Materials, if the Exchange Rate in System, at the time of payment of duty (Fixed in Purchase Order) and at the time of doing MIGO are different , in those cases System is posting the difference of these two in Price Variance Account with corresponding effect in Loss in FX Transactions account ,while doing MIGO.
But in cases, where we are importing Capital goods , in that cases , System does not post any amount in Price Variance or Loss in FX Transactions, even if the exchange rate at the time of Payment of duty and at the time of MIGO are different.
i would be grateful in anyone could tell me the reasons for variances in case of import of Raw Materials .