Project Accounting in Foreign currency - discussion

Hi,

We have a query relating to project accounting in multi-currency behavior.

The project type = fixed price
Accounting method = cost-to-cost
Cost category = used to capture purely cost with billing type = NONE
Fee = total contract sum = BHD46,000 = RM460,000 (functional currency)

During project maintenance creation, we have assigned as foreign currency BHD with exchange rate 10.00

However, during the project progress billing (actual billing) user have raise the invoice in different exchange rate such 8.9 or 8.12....

All the while when user run Revenue Recogniction, system is actually recognized based on RM460,000 as the calculation, and user did not notice that.

Until the final RR process which everything has been completed for the project, in term of cost and billing, that is where the problem arise.

Total actual bill = BHD46,000 but total in functional currency = RM411,900

however, GP system will expect RR to take up RM460,000 as total revenue and posted a value to Earning in Excess. But in real business, there is no such billing.

Why does GP behave in such a way?

Thank you.