Price variance

Hi,
in trx OMEU there is an entry: PE "Price variance: purchasing"
What is the purpose ?
Regards

PE is the tolerance key for price variance checked during invoic verification. the setting is at company code level.
For example:
    Price variance
    Lower limit:    10%
    Upper limit:    0.00%
    If you have configured these settings, an invoice amount can be up to
    10% below the value determined from the purchase order and the goods
    receipt. The invoice amount must not exceed this value.

Similar Messages

Hard to believe: missing report on purchase order price variances ...

dear all-
Happy New Year to you all and all the best for this new 2008!
Traditionally the procurement to pay process is an area that really can benefit from automation. However more important than automation (efficiency), tools that support a process have to be effective first! And provide good understanding of business process at hand by providing information on essential key-figures of the process at hand.
That brings me to the topic of this post: purchase price variance. In my opinion the SAP functionality effectively handles PPV (purchase price variances): variance between purchase price and standard cost (let's call this one PPV1) and the variance between the invoice price and the purchase price (let's call this one PPV2). A good understanding of both PPV1 and PPV2 are useful for potential process improvements ... PPV1 relates more to the efforts of the purchasing deparment and/or determination of pricing in purchase orders while PPV2 brings in the efforts of the vendor.
Anyways, in order to obtain understanding of the variances mentioned, information is needed. E.g. a purchase price variance report or -analysis. I can't find such a report!
I did look on various forums and when I find something that relates to a PPV-report or -analysis, people are discussing ways to create an ABAP-report or query ... Much to my surprise: no clear answers. It looks that such a report even does not exist! That's what I find hard to believe!
Does anyone of you know about a report or analysis-tool on purchase price variances? Or is it really true that such a report is just not there!
thanks,
Ben

Hello Ben,
i have been checking the whole Forum and also asked around collegues and it seems that it is really still true there is no simple report that is showing PPV details (PO price, Invoice price, Standard price and the quantities and values)
I think the solution to get such a report is to programm it Starting point would be the line items on PPV account.
To get such a report with connection between Delivery and Invoice, GR based IV is helpful.
It is unbelivable that this never has been setup !
We are currently using FBL3N on the PPV accounts by current monthe with 2 variants subtotalling on matarial and sorting by high value
Let me know if anybody find a report
Cheers
Tim

Invoice price variance

Hi gurus,
Can anybody please let me know where to look for the settings for invoice price variance. The PO was created for material A for 26.01 USD for 1EA for 6EA. Therefore the GR amount is 156.06 USD (26.016). We received the invoice for 48.41 USD for 1 EA, therefore the total is 290.46 for 6EA (48.416). accounting have blocked the invoice. Where can we check in the system for the invoice tolerances so that it explains why the invoice is blocked. I also want to know whether the invoice was blocked manully or system atuomatically did it? Now how can accounting correct this anamoly?
Thanks
Anusha

I guess your invoice has automatically been blocked for payment because either the upper absolute or the percentage limit has been exceeded by the amount specified in customizing for key PP
Go to OMR6, key PP and check the settings
Accounting can release the invoice for payment through Tcode MRBR
See following wikis for some additional information:
http://wiki.sdn.sap.com/wiki/display/ERPSCM/MM-IV-LIV-CRESetTolerancesforIncoming+Invoice
http://wiki.sdn.sap.com/wiki/display/ERPSCM/MM-IV-LIV-MRBRInvoiceReleaseinLIVTransactionMRBR
Regards
Sidi

Invoice Price Variance Report

Hi,
When the IPV report is run for a particular month , I find a variance value of -759 against an account. But when I look in Payables entries for this account, I find an additional -1329 , in addition to -759 and when I drill down these are identified as Invoice Price Variance. Why isn't the report picking up this entry ? For these entry lines the source is "Cost Management". Please provide me with some pointers to this.
Thanks,
Meenakshi

hi
thanks for your reply. assume that PO total is 150. invoice is created of 100. in this case should i see an amount in Invoice Price Variance? im not seeing any change in Invoice Price Variance. for me what happens here is Transaction Amount - Accounted is shown -50 as its still to create an invoice of amount 50 which is in fact the accrual balance. pls give me a feedback on this. i want to produce a scenario which will make the invoice price variance more or less than 0.
thanks
Lisan

CST amount is debit in the purchase price variance

Hi
We are maintaining std in the materials master
and price procedure as taxinj
While doing migo, the CST amount is debit in the purchase price variance and credit in the GR/IR RM,
We need to debit the CST amount in the in the Raw material account
what are the settings i need to carry out Plz give suitable suggestions.
in tax code we are not maintining any G/L account for the CST
Edited by: K. Raghuram on May 19, 2009 12:48 PM
Edited by: K. Raghuram on May 19, 2009 1:02 PM

Hi Raghuram,
I think,the only possiblity for this to happen is due to the standard Price in the Mterial Mater you are using.
Means in the Material Master ,the Price key is a standard pricing.
So ,when ever you do a GRN ,the PO value will go and hit the Material account upto to the Standard price maintained in the material Master.
if the amount is more than it ,then amount difference will hit the Price variance account.
so in your case ,the CST is inventorised one ,i believe.. so that is the reason it is behaving so.
if there is somethig else required.provide a clear insight of the Problem.
Regards
Anjanna

Good Receipt is posted to price variance account instead of Inventory account

Dear All,
My client have a PO with three materials. All those materials have been assigned to same valuation class. Client has posted GR for this PO and one material has been recorded a misbehavior when selecting the accounts. That mean, it has been ignored the inventory account and instead value has been posted to price variance account. So the debit entry in price variance and credit entry in GR/IR.
But other two material has the automatic posting to correct account as Debit to Inventory and Credit to GR/IR.
Could you pls help me to find the reason for this.
Regards
Sujith

Dear Vivek and Dev,
Attached herewith the screenprint of Accounting view of the two material. Material 300000075 has the correct posting while material 300000028 has recorded incorrect posting
1

Report for Purchase Price Variance

Hi,
Is there any standard report for finding Purchase Price Variance between Purchase Order and Material master
regards,
Mallik

Hi Mallik,
There is no std report for Purchase price variance .
But you can check KSB1 , where you can find the Price difference which is going to your PRD account .
You can find out your PRD G/L account .
Now go to KSB1 . In the cost element field give the PRD G/L account .
After executing change the layout as per your requirement .
Now you can see the Pur Price variance for the particulat material for the PO .
Otherwise you need to develop a customised report .
Hope this helps .
regards

Purchase price variance line item - not to be posted in Parallel currency

Hi All,
Scenario:
Transaction currency - SGD
Local Currency - INR
Parallel Currency 1 (LC2) - Group currency - USD
Parallel Currency 2 (LC3) - Global Company currency - INR
Import PO - MIGO - MIRO
PO is raised in foreign currency.
Material master price control is maintained in 'S'.
While doing MIGO, I am getting following accounting entries:
Stock a/c Dr.
GR/IR a/c Cr.
Price variance* a/c Dr.
*The price varaince is because of difference in my material price as per material master and PO.
If I go and check in FBL3N, I can see all the line items in Transaction, Local currency and 2 Parallel currencies.
My query is, In SAP is it possible to avoid Price variance line item posting to Parallel currencies.
To my knowledge I know that it is not possible to avoid a single line to post it to Parallel currencies.
Thanks in advance.

This is the answer from OSS
Dear Customer,
the system works as designed.
When Material Ledger is activated, price differences are always
generated under the circumstances you have described. The reason is
that when material ledger is activated, price differences must not be
included into the stock changes value, otherwise the system would
not be able to calculate an actual price.
When Material Ledger is activated, the customizing setting
for handling price differences in the subcontracting process has no
effect.
Best regards,
Santiago Lorite
AGS Primary Support, Business Suite & Technology u2013 Logistics

Moving average price variance in Invoice verification

Hello,
I set in sys that the moving average of price variance will be check in tolerance of x% (lower & upper limit) BUT the system ignore it , when I save an Invoice (MIRO) with price that change the moving average price for more than X% the invoice was saved with no W/E massage . I set all massages that seams to be relevant with E but nothing was happened .
What is the way to set the system that in Invoice verification stage it will check the moving average price variance and give an alert or will not let the invoice to be post ???
Best Regards
Idit

Hi,
You can block Invoices using transaction code OMC0
(a) Use Tolerancy Key VP for your company code
(b) Fill-up Lower and Upper check tolerance limit %
When a stock posting line is created as a result of an invoice item, the system calculates the new moving average price that results from the posting. It compares the percentage variance of the new moving average price to the old price using the percentage tolerance limits defined.
Bye,
Muralidhara

Asset PO Price Variance posting w/out asset account assignmt to wrong acct

We're bringing up fixed assets and are struggling with the account assignment behind PO Invoice receipt (MIRO) and price differences. At the moment, the PO is A account assigned and has the standard SAP settings except that the GR is valuated and the account assignment indicator is single instead of multiple. When we process MIRO, if there's a price difference, it hits the table 30 account assignment for the DIF trxn key.
We have 2 issues.
1. The account behind DIF is used for normal merchandise purchasing which isn't account assigned and doesn't reflect the GL account for the asset class.
2. The asset number is not being passed to the price variance posting (this could be a result of the GL account config since our normal merchandise purchasing doesn't carry a WBS).
We have an additional wrinkle in that we do a shadow posting to a WBS element as well as the asset number in MIRO. It seems to work fine so long as we don't have a price variance.
From reading documentation, it appears the price variance should be posting to the asset so we appear to have mis-configured something. I'm hoping it's not the valuated GR as we have a business requirement to show the value of the item when we receive it. In any case, we can't figure out what we're missing. Any assistance would be greatly appreciated.
thanks for your time and help.
Christie
Message was edited by:
Christie Monacos

Triplicate thread :-)
Getting error wrong number or type of parameters for EAM_PROCESS_WO_PUB
wrong number or types of arguments in call to 'PROCESS_MASTER_CHILD_WO'

Standard Report for Price Variance

Dear Friends,
Business is asking for the Price Varinace Report in standard SAP based on following criteriau2019s
The requirement is to have a report which provide :
·         Purchase price variance u2013 PO V/s Invoice which is posted to General ledger.
·         By Vendor ( both third Party & Intercompany) with Vendor number and name.
·         By Material code & Material description and Material class
·         By Purchase order
·         For a given month or Year to date.
·         By GL code where the purchase price ( PO v/s invoice) is posted.
Is there any standard report available for this in SAP or is it should be customised, if so is it complex...
Please suggest me on the same
Thank you for your promt reply
Radhika Eluri

Hi Santosh,
I could not find the related reports for the same which i can show to the user.
Could you please give me what are those reports available(Even they are not completed) so that i can provide the same to business.
If they are not satisfied with them, then we will go for developemnt
Thank you
Radhika Eluri

Standard SAP report for purchase price variance

Hi All,
I need to know if there is a standard SAP report that shows the purchase price variance.
Thanks,
Regards

Hi Ritika,
There is no standard report available to compare purchase order price cost and standard cost of a material.
You can check if FBL3N helps to resolve your purpose or not. Or else you have to make a customized report with the help of ABAP'er on the informations based on the following tables.
MBEW
        EKKO
        EKPO
        EKBE
       MKPF
        MSEG
        KEKO
        KEPH,
        BKPF
        BSEG
        LFA1
Thanks,
Vasanthan

Report to view Manufacturing variances - Purchase Price Variance

Report to view Manufacturing variances - Purchase Price Variance, Materials Usage variance, Labor Usage variance.
for above reports if standard tcodes are available in SAP please provide them or else explain how to develop these reports in SAP
Spandana

Hi
You can use KKO0 reports...
For that, assign your Cost Comp Str in OKN0 and choose Product Group = material group.. This is one time config
Execute KKRV monthly after all period end setttlements are over... Then you can view KKO0 reports
br, Ajay M

Purchase price variance in subcontracting order

Our customer has the following scenario:
     Purchase account is posted with the value of stock subsequently purchase price variance is a legal account
     Material ledger is active
     Inventories are managed with standard price for each material code
     Latin method management of inventories post stock values on managerial account
In good receipt with a subcontracting order, in case of purchase price variance, legal account of purchase price variance is posted generating a wrong reconciliation between managerial and legal posting.
Example
The subcontractor is a co packer that assembles material A to produce material B
Material A has a standard price of   3
Material B has a standard price of     5
If Co packer fees have a value     of     2 no purchase price variance occurs during good receipt, as a matter of fact :
(Co packing fees) 2 + (Material A) 3 = (Material B) 5
Else if co packer fees have a value of 3 a purchase price variance of 1 occurs and itu2019s posted using transaction key u201CPRDu201D. On FI the following document is posted:
Legenda : L stands for legal account , M stands for managerial account
(L) Co packing Fees                                         3
(L) Invoice to receive                                     3
(L)Purchase price variance                            1
(M) Consumption Material A                           3
(M) Stock Material              A                            3
(M) Stock Material               B                            5
(M) Production Confirmation Material B       6
In this scenario Purchase price variance should be a managerial account, but transaction key is PRD and changing the account would affect every posting.

This is the answer from OSS
Dear Customer,
the system works as designed.
When Material Ledger is activated, price differences are always
generated under the circumstances you have described. The reason is
that when material ledger is activated, price differences must not be
included into the stock changes value, otherwise the system would
not be able to calculate an actual price.
When Material Ledger is activated, the customizing setting
for handling price differences in the subcontracting process has no
effect.
Best regards,
Santiago Lorite
AGS Primary Support, Business Suite & Technology u2013 Logistics

Purchase Price Variances

Hi,
I am new to SAP. What is the best way to look at all the purchase price variances for a whole month?
Thanks

HI,
Use transaction FBL3N and enter the Purchase Price variance GL Account with period for month and execute....
Regards,
Chintan Joshi

Purchase price variance

Hi
I want to to drill down the purchase price variance.Say I have PPV of 10K. I want to drill down to details of 10k.How to proceed.What is the transaction code for that?
Thanks in advance.
SN

Hi Satya,
Variances are based around the standard values that are set up in the Material Master file. These standard values represent what it "should" cost to produce (or purchase) a unit of the product. Variances are calculated automatically when settlement jobs are ran in SAP
purchase price variances are caused by a difference between the standard cost in the MM file and the actual price on the purchase order.
The entries will b something like this
Debit Inventory XXXXX
Credit Accounts Payable XXXXX
Credit Price Variance XXXXX
Regards
Genie

Price variance

Similar Messages

Maybe you are looking for