Landed costs and price differences

I'm trying to figure out what PS does to adjust for total value discrepancies between an invoice voucher and associated PO. Say on my PO I have a line item with quantity of 2 and unit price of $10. Therefore total value is $20. When I create a voucher, that same line item is now 2x$11 = $22. I approve that voucher for $22. Now I run the Extract Landed Cost batch process. What does this process do to "compensate" for the difference between voucher and PO? Does it change the unit price of that item in inventory from $10 to $11?

Hi, yes you are right: Using this approach ML would use price differences for other batches and increase their value instead of posting them as loss like the initial cost.
The way around that would be to post some unplanned material good receipt for the loss production order, e.g. a material called scrap. In account determination you might make sure that these materials have own stock and price difference accounts that you could treat special in your balance sheet.
This would be shown in ML like a joint production between the planned product and the scrap material and multi-level variances would be distributed using following an apportionment structure from material master.
If it is difficult to maintain a reasonable apportionment structure you might implement BADI  cost_split described in note 997264.
Also a good possibility would be to use a quantity-proportional split that can be derived from the ML quantity structure.
I could provide an example implementation of that.
best regards,  Udo

Similar Messages

  • Miro hitting inventory and price difference

    Dear All,
    I would like to seek advice of the posting during MIRO on point 4 and 5 why there is a hitting on inventory account and price difference of the amount given? How system get the amount in inventory account and price difference account?
    Really need advice.
    1)
    GR - qty 20
    dr inventory $1500000
    cr GRC $1500000
    2) GI - qty 1 and now remained only 19 qty
    moving price = $75,000
    qty = 19
    price unit = 1
    value = $1425000
    3) MIRO
    dr GRC $1500000
    cr vendor $1500000
    4) MIRO say qty is 21 and amount no change
    dr GRC $1571429
    cr vendor $1500000
    cr inventory $64626
    cr price diff $6803
    5) MIRO say qty is 20 and amount i enter $1507500
    dr GRC $1500000
    cr vendor $1507500
    dr inventory $7125
    dr price diff $375
    thanks

    refer my remarks in BOLD
    4) MIRO say qty is 21 and amount no change
    This scenario is not possible as you have taken GR for Qty 20 only.
    *still you have added $ 71429 in GRC so this should be uploaded on Inventory ($71429 / 21 = 3401.38) hence Inventory account will get updated with $3401.38 * 19 (available stock)  ie $ 64626 & diff of 21 - 19 = 2 * 3401.38 ($6803) will be updated in  Price Diff account*
    dr GRC $1571429  
    cr vendor $1500000
    cr inventory $64626
    cr price diff $6803
    5) MIRO say qty is 20 and amount i enter $1507500
    * Goods receipt is posted with 1500000 but vendor has presented invoice of 1507500 hence the additional cost ie 7500 has to be loaded on inventory but available inventory is 19 as 1 qty is already issued from stock hence (7500/20 = 375) for 19 qty inventory account will updated with $7125 (375*19) & for material which is already issued prior to taking invoice receipt ie 1 Qty (375 * 1) = 375 will hit to Price Diff Ac.*
    dr GRC $1500000                                  
    cr vendor $1507500
    dr inventory $7125
    dr price diff $375

  • Landed costs and custom duty

    Hello
    I have an issue with landed cost and customs duty
    The actual customs duty when it is corrected is OK when you use one supplier and one good receipt
    when it is with many suppliers and many goods receipts and when you want to correct the actualduty the split is wrong it brings the same value for every item and the split is wrong because it must be based on the item line value...
    Did anyone experience the same issue is it corrected with an more recent patch or is there a workaround ?
    SAP BO1 2007A PL39

    I am afraid if you need to correct a landed cost with many suppliers and many goods receipts, there may not have any available logic but reverse the entire transaction and redo it.  Line item correction for financial transaction may not be possible due to system restriction.
    Thanks,
    Gordon

  • Hi all! I need to buy iPad tomorrow. Need your advice which iPad to buy? For almost the same money I can buy iPad 2   3g or iPad 4 wireless only. Both of them are 16gb and price difference is 70€ for iPad 4

    Hi all! I need to buy iPad tomorrow. Need your advice which iPad to buy? For almost the same money I can buy iPad 2 + 3g or iPad 4 wireless only. Both of them are 16gb and price difference is 70€ for iPad 4

    16GB vs 32GB vs 64GB: Which new iPad storage capacity should you get?
    http://www.imore.com/2012/03/08/16gb-32gb-64gb-ipad-capacity/
    How much content will fit on my iPod or iPhone?
    http://support.apple.com/kb/HT1867
    iPad Mini vs. iPad 2 vs. iPad 4: Which iPad Should You Buy?
    http://www.padgadget.com/2012/10/25/ipad-mini-vs-ipad-2-vs-ipad-4-which-ipad-sho uld-you-buy/
     Cheers, Tom

  • Need solutions for Budget, Landed cost and difference in 2005b and 2007B

    Hi all,
    Need help for the following scenarios
    1. How to define budget for Purchase order and cost centers
    2. Landed Cost in SAP B1 2007 how do we do? I am getting an error message stating that Landed cost allocation account is not defined....
    3. Difference in 2005B and 2007B
    Regards
    Shashi

    Thankyou Jasper,
    Landed cost problem has been solved.
    Regarding Budget set up My client need Budget at costcenter level. i.e Cost center wise they want the budget. As of my knowledge to do this we need to activate Account segmentation right?
    Without doing that is there any other way where we can set Budget cost center level also?
    one more thing, there is a check box of purchase order, Goods Receipt and Accounting at the time of setting up Budget in General setting? what it is for?
    Regariding difference in 2005b and 2007B I was not able to get documentation on this.
    Regards
    Shashi

  • Mr21 and mr22 hitting material cost or price difference

    Hi everyone,
    if i make changes in MR22 or MR21 for both map item and standard price item, will the price change or will hit price difference?
    thanks

    Hi,
    The price change is MR21 will triggers to BSX and UMB keys.
    For more check the link about account entries & Price control in details:
    http://sap-f2.blogspot.com/2010/03/accounting-entries-not-involving-grir.html
    Regards,
    Biju K

  • Landed Costs and Warehouse Transfer Costs

    We have an issue that Iu2019m sure B1 can handle, but Iu2019m not sure how to go about it.  When we have a shipment of items come in from overseas, we enter in a landed costs document so that those shipping costs are appropriately distributed as products are sold from our LA warehouse.  Sometimes however, we ship multiple items from our LA warehouse to our Utah warehouse.  What I want to do is basically run another landed costs, so that the shipping costs of sending items to Utah is also apportioned between the different items.  There doesnu2019t seem to be a place to enter this in the Inventory Transfer document.  How would I go about solving this problem?

    Hai Derek Perkins,
    Try it out this solution if it satisfies,
    Instead of booking Inventory Transfer, Book a Goods Issue(which Credit the Material Acc and Debit Freight Acc)
    Then Book Goods Receipt with (Itemcost+Freight Cost) as unit Price (which Debit Material Acc and Credit Freight Acc)
    Now, the Expense incurred in Transport can seen through Freight Acc.
    Note: In Goods Issue even if u enter Price system pass Ledger only for Itemcost.
    Regards,
    Thanga Raj.K

  • Landed cost and cogs

    hi,
    1) i was told that landed cost (inbound freight cost) is part of cogs. may i know why?
    what i understand a product cost is made up of direct labour, direct material and manufacturing overhead but no landed cost.
    2) distribution cost (outbound freight when selling) is not landed cost. it is not part of cogs. the cost should be reported at where?
    can have advice?
    thanks
    rgds

    Hi,
    It seems u r mixing landing cost for direct material(Procured) and u r finished goods(produced).
    In the case of procured material all the costs incurred to bring the material upto their usage level u can account as the material cost. Landing Cost is one such price. U account the cost of the procurement material as direct cost in the product in which it is consumed.
    In the case of produced goods COGM includes Direct MaterialsDirect Labour Production Overehads. COGS is COGM+All Indirect overheads.
    Here all Indirect overheads means all the cost as a producer u incurr to distribute to u r customer. Landing cost will be more relevant from the customer point of view. For him landed cost is purchase price(u can understand producers COGS)+ all incidental costs.
    Regards
    Sudhakar Reddy

  • GR / IR and Price Differences

    Hi
    A question on price differences.
    We currently post our price differences at goods receipt (PO price - Std price).
    And secondly at invoice receipt (PO price - Actual price)
    In order to be able to analyze easier, we want to post goods receipts always against standard price.
    At invoice receipt the full price differences should be posted then.
    Does anyone know if and how this setting is possible in SAP ?
    Thanks.

    Hi
    If PO is created for 90 then how you are paying 93 to vendor. You are following PO based IV?
    If you want to pay more to vendor then better to use the option debit material in IV.
    In MIRO enter 90 in item details and 3 in material tab and 93 in invoice amount field.
    Then your postings will be
    GR/IR 90 debit
    Material 3 debit
    Vendor 93 credit.
    Thanks

  • Cost of price difference and cost of goods sold

    Dear All,
    I got the explanation from forum :
    The price variance differences are posted per purchased item which are used in making the material to be sold. this difference rolls to the COS line, but not the COGS account.
    May I know what is the difference of cost of goods sold and cost of sales. Both also cost, cost of goods sold is inventory turned to cost upon goods sold whereas cost of sales, to me, can be indirect cost.
    Any help to further explain of COS in relation to price variance?
    Thanks

    Hi
    In SAP there is a concept of COGS, but there is no concept of COS.. COS is more of a accounting terminology,... There are different schools of thought on COS/... Some companies treat COS = COGS + Selling overhead...
    With Material Ledger, the variances of components purchased can be rolled up to the Header Material which consumes them.... If this header mat is consumed in further processes, the consumption can also be revaluated.... Going So on and so forth, you can also revaluate the COGS of the final material....
    Simply said, when variances are rolled up, you can revaluate the inventory... If the inventory is consumed before revaluation, then you can revaluate Consumption / COGS....
    Hope this helps
    Regards
    Ajay M

  • Unplanned Delivery Costs and Price Variance - Account Determination

    Hi,
    I am facing the following issue:
    My goal is to automatic post the unplanned delivery costs to an account depending on valuation class.
    The account should be diferent from the one used in purchase (EIN)  post but both values should affect the moving price.
    Can we do that?
    Thank you for your cooperation
                   Best Regards
                     João Fernandes

    My take is that you can have or the other, not both.
    You configure how the uplanned costs are handled, a) Distributed among invoice Items or b) to a different G/L line.
    Path : SPRO>MM>LIV>Incoming Invoice
    If you pick, the costs goes to the stock account.
    If you pick B, the cost goes to a separate account but it will not affect the item price.
    The account is defined in OBYC, for transaction UPF, and it is Valuation class independent.
    Hope it  helps

  • Difference between Item Cost and Last Evaluated Price

    Dear All,
    What is the difference between Item Cost and Price in Last Evaluated Price List. Exactly when are they updated?
    Regards
    Sibasish

    Hi Sibasish,
    The "Last Evaluated Price" is simply a price list but can't have a direct manipulation like other price lists. Its values may not involve in any accounting transactions if it's not selected for the concerned transaction any way.
    On the other hand the item cost is the cost which is maintained by SAP B1 (until and unless you select the Standard Valuation Method), and it gets involved in the accounting transactions where inventory is involved. For e.g. the "COGS" is calculated on the basis of this value.
    Please close this thread if answered ... or please let us hear something more from you on this...

  • Price Difference Account and Change in Stock  Account

    Hi Experts,
    What are the main differences between "Change in Stock Account" and "Price Difference Account" ?
    Can anybody plz provide me the documents which gives sequential entries from GR to Payement involving these two Accounts?
    Regds,
    Bijay

    Hi
    Change in stock is triggered when goods are delivered to stock (Fg location) thru movement type 101 - GR for an order.
    During PGI - entry posted is
    COGS                 -        Dr
    FG Inventory        -        Cr
    Just though of correcting the message posted
    If the above clarifies pls assign points as a way to say thanks

  • Landed Costs Journal Entry

    My customer created a Purchase Order, then a GRPO based on the PO.(both in USD) for different items of different item groups.
    They then created Landed Costs based on the GRPO in ZAR.
    The journal created the following transactions :
    Item Group A to Price Diff Account
    Item Group B to Price Diff Account
    Item Group C to Price Diff Account and to Stock Account.
    For Item Group A & B there was no stock account postings.
    Any ideas on how to sort this?
    Thank you
    Janice

    Hello Janice,
    The Debit posting accounts in Landed Cost transactions depend on the current In Stock quantity of the item.
    If the In Stock Qty > = Landed Cost Qty, then only the Stock Account will be used.
    If the In Stock Qty < Landed Cost Qty, the landed cost amount will be split between the Stock and Price Difference accounts.
    If the In Stock Qty = Zero, then all the landed costs will be posted to the Price Difference account. This is in the assumption that all the items have been sold. Hence, any further costs pertaining to the sold items will be considered as an additional expense to appear in the Profit and Loss Report.
    The above scenarios are described in Note 1161695 entitled Price Difference in Landed Cost transactions.
    I hope it helps.
    Regards,
    Lorna Real

  • Landed Cost :   Journal Entry

    Hello every body.
    Something rare is happening to me when I try to make a Landed Cost Journal Entry.
    Normally, when I try to do this, the journal entry it comes with just One account (inventory account), but this especial one is coming with 2 accounts:
      -  Inventory Account
      -  and Sales Cost Account
    I need to know why is this happening?
    All items on this Landed cost have serial number management, some of them were invoiced and this is the first time it happens.
    My best Regards.
    Enriquillo Guingi

    Hello Enriquillo,
    Please verify the current in-stock quantity of the Item.
    If the On-Hand Qty > = Landed Cost Qty, then only the Stock Account will be used.
    If the On-Hand Qty < Landed Cost Qty, the landed cost amount will be split between the Stock and Price Difference account.
    If the on-hand quantity is currently zero, then everything will be posted to the Price Differenccce Account. This is in the assumption that all the items have been sold. Hence, any further costs pertaining to the sold items will be considered as an extra expense to appear in the Profit and Loss Report.
    I hope the above addresses your enquiry.
    Regards,
    Lorna

Maybe you are looking for