Ok i have demystified it for you:
There are 2 function modules involved as you have already mentioned in your post.
CONVERSION_EXIT_INVDT_INPUT
CONVERSION_EXIT_INVDT_OUTPUT
So in the first function module if you pass any date then it is converted into number.
Lets say you pass the date as 01.01.2000
After executing the first FM you will get 79999898 this value
Now how did you get this value:
Inside the First FM there is another FM called
CONVERT_DATE_TO_INTERNAL
In this if you pass the date 01.01.2000 then it gives the output in the form of YYYYMMDD.
20000101
Now its also written in the FM that subtract this value with 99999999
So ( 99999999 - 20000101 ) 79999898
Hope this gives an idea how it is being calculated in the background.
Again if you pass this value in the other FM then it will give you the same date back which you entered in the first FM.
Regards,
AL