Average Cost Variance Account
Hi Gurus
When i'm reviewing the Journal Distribution for the Work Order Completion
i found value at Average Cost Varinace ....why is this account affects anh how to charge this value at the FG Material account again
Regards
Amr Hussien
Hi amr,
First of all in Average costing there should be no variances, but still if you do transactions after receiving finish product the system will generate variances. I was facing sample problem i did two thg in forms personalisation.
Control user should not complete the Job if Purchase order is open & second user are not allowed to complete the job thur move transactions they should use WIP completion only
regards
Arshad
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I would like to use the client extension, for the account generation while doing a material transaction.
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Edited by: santark on Feb 2, 2010 2:50 PMHi,
Can you please advise the steps you did for CSTPACHK extension, we have the requirement (Average costing) where we need to get the different material account id (one segment of the GL account should be overwritten)for the Transaction based on the item for the cost manager to cost the transaction.
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Is variance account needed for moving average item valuation?
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My client is currently using SAPB1 ver.2005 and upgrade from ver.2004.
After upgrade, in ver.2005, they want to add A/P credit memo that is copied from A/P invoice they have created earlier in ver.2004.
When they tried to do that, system prompt an error message saying "Inventory account is not defined, 'item code' (message 173-77).
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G/L Determination -> Purchase Tab -> Expense and Inventory Account.
Therefore, what is the cause of this as they never encounter this in ver.2004. They didn't change anything in the G/L determination as well.
Please help..
Regards,
KevinHi Wilma,
Yes, i have tried both scenarios, the JE i've got are the same with what you have got. But could you explain for scenario 2? Why when you do GRN is MYR 110 and in A/P Credit Memo is MYR 100, But in JE is still
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Ok, Can you try this scenario
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The JE of the A/P Credit Memo is like the above.
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Kevin -
How to allocate cost variances during goods issue in sales process?
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In China GAAP, cost variances ( variance between standard cost and actual cost) should be capitalized to balance sheet at month-end.
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Alex LIU
Message was edited by:
Shuping LiuHi,
All variances between Standard & Actual cost should be settled to a P/L A/c as these are similar to Purchase Price variances on Raw Material purchases.
If you are valuing your Finished Goods @ Standard cost, then the difference between the Standard & the Actual cost should be debited or credited to a Price or Cost difference P/L A/c either at the time of doing the GR of the Production or at the time of posting the Goods Issue for Sales Order.
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Assign points if useful. -
Average cost of an Article(SKU)
In IS-Retail where can i see the moving average cost of an article. Is there any report or inquiry to view the same or is there a table which stores the value for each location.
Hi,
In Article Master MM42/43 in Logistics DC & in Logistics Stores Screen down underneath you will find Accounting Button.
If you click this you will get Moving average Price field.
MBEW is the table name for Material Valuation and VERPR is the field name for Moving Average Price.
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ManiKumaar -
My clients business buys used equipment on the secondary market that they refurbish & sell. The prices fluctuate pretty dramatically based upon supply and demand; so it really isn't possible to set a standard cost that would be valid throughout the year. Using standard costs results in huge fluctuations in the inventory purchase price variances month over month and quarter of quarter. Therefore, we explored using moving average costing.
Could someone help me get the moving average to update using PM04, Does SAP actually recommend against using moving average costing?Charlie,
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Hi,
I have a problem with deciding how many Price variance Accounts I should create.
There are 3 Production divisions and there are 3 types of PP orders.
Each PP order can create Finished Goods or SemiFinished Goods.
Should I create separate variance account for Finished Goods and separate variance account for Semi Finished Goods?
How can I assign these variances account (for settlement) to an order type, if one order type can do both FG and SFG. Maybe the PP order types should be divided into FG and SFG - so that there would be 6 PP order types?
What can you suggest me?
Best wishes,
KarolHi Karol
Create two production variance accounts for FG and SFG. These should not be created as cost elements and should have PRD PRF as account determination. You dont have to create as many variance accounts for each PP orde type
Create one more variance account - called Variances in production as cost element.
Order crated for a material and depending on the material type and valuation class assigned to material, different accounts will be hit
You assign PRD PRF for FG and SFG material valuation classes
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Average Costing - sub inventory rollup
Hi,
I am writing some reports that use average costing.
The reports need to report average cost @ subinventory level, but also @ inventory level.
Does Oracle maintain average cost information @ all levels of the hierarchy or do i need to recalculate @ run time for the the master inventory?
Thanks.More clarification on this - you can find this on metalink -
The five Valuation accounts and the default Expense account are
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each subinventory and intransit within the organization. They
cannot be changed at the subinventory level under layer costing.
The expense account defaults to each subinventory within the
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You can choose a different valuation account for each cost element, or use the same account for several or all elements.
How you set up your accounts determines the level of elemental
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Edited by: Aglx on Mar 4, 2010 1:44 PM -
Cost Analysis: Planned Vs Actual Cost Variance for cost
Hai
Which is the standard cube for "Cost Analysis: Planned Vs Actual Cost Variance for cost"?
Because i need these fields
Cost Element
Actual Cost
Plan cost
Debit Posting
Credit Posting
Controlling Area
Cost CentreHi nvr,
Cost Element : Cost Element nothing but a which product your spending
Actual Cost : How much amount your spend on particular product
Plan cost : How much amount you need to spend on particular product
Debit Posting : In Accounting they are doing one positng that is depend on Debit and Credit.
Credit Posting:
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In FI they are posted like this.
Product Name DR.(Debit) 500
to Cash 500 (Credit)
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For Exp: You have Man.Company your doing some processes which process that cost is spend nothing but a Controlling Area.
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Library develop report with report painter in Cost Center Accounting
Dear experts!
Now, I'm getting some issue about finding library for developing report with report painter.
Really, i don't know libraries that are used to develop report with report painter for Cost Center Accounting.
Can tell me about them?
Help me, please.
Best regards, HuyHello Huy,
CCA reports would be based on table CCSS, you can go to transaction GRR2 and check the various libraries listed there and find a suitable one. You can also use libary 1AB which contains the various cost center variance reports or you can use transaction GR21 to create your own library.
Kind Regards // Shaubhik -
Accrual account,Variance Account is invalid while PO Requsition Import.
Hi Gurus,
We are working on "How to set up Outside processing - Procure to use in WIP for Standard Costing" concept.While Perform a WIP Move Transaction to the OSP Step we are getting the follwoing errors
Accrual account is invalid
Cause: The accrual account that you entered or that was derived is invalid.
Action: Enter a valid accrual account.
Variance account is invalid
Cause: The variance account that you entered or that was derived is invalid.
Action: Enter a valid variance account.
When we checked the "PO_REQUISITIONS_INTERFACE_ALL" table ,there is Null value for "variance_account_id","Accrual_account_id" columns.
We checked the account setups in the "Inventory" level for "Accrual account" and "Variance Account",everything is fine.
Please provide me solution for resolving this issue.
Thanks
SR.I think the value you are passed for ACCRUAL_ACCOUNT_ID and VARIANCE_ACCOUNT_ID are Invalid.
Please check
SELECT * FROM GL_CODE_COMBINATIONS WHERE CODE_COMBINATION_ID = < value of Accrual A/c id >
Record should exists in GL_CODE_COMBINATIONS table. -
"Price difference" being journaled to "Variance Account"
Per the online help in B1 8.8, the "Price Difference Account" in the G/L Account Determination: Inventory Tab window "price differences between the base and target documents are recorded in this account."
When I create a Purchase Order for an item, then copy to an A/P Invoice and change the price, the difference between the PO price and the Invoice price is posted to the "Variance Account", not the "Price Difference Account", per the documentation. I have confirmed that the description of the "Variance Account" function is happening correctly, that is, when the price differs from the standard cost the difference is posted to the "Variance Account".
Can someone help with this?Gordon,
I only put the "Variance Account" here for reference. My issue relates to the "Price Difference Account". Rather than a difference in price from Purchasing documents going to the "Price Difference Account", it is going to the "Variance Account".
This should be what is commonly called "Invoice Price Variance". The "Variance Account" is used for what is commonly called the "Purchase Price Variance". It appears in 8.8 that both variances are going to the same account even though documentation implies differently.
The following exerpt from the online documentation is not how the system is working:
"Price Difference Account
Used in purchasing transactions only. For certain scenarios, price differences between the base and target documents are recorded in this account."
To recreate this scenario (Invoice Price Variance),
1) Put two different accounts in "Administration | Setup | Financials | G/L Account Determination" on the inventory tab under "Variance Account" and "Price Difference Account."
2) Enter a Purchase Order for a Standard Cost Item enter a Qty of 1 and Price of $1,000.
3) Copy the Purchase Order to an Invoice and change the price to $900.
The journal entry that is created includes a $100 entry to the "Variance Account" set up above.
The alternate variance (Purchase Price Variance) can be recreated as follows:
1) Set the standard cost of an item to $1,000
2) Enter a Purchase Order for the Standard Cost Item enter a Qty of 1 and Price of $900.
3) Copy the Purchase Order to an Invoice and do not change the price.
The journal entry that is created includes a $100 entry to the "Variance Account" again.
These two scenarios should post to different accounts as described in the online help under G/L Account Determination. -
Convert Standard costing to Average Costing
Hi,
Could anyone just as broad skeleton tell me know how to change Standard costing to Average Costing in Oracle Costing module.
And what factors should be taken into account before doing to.
Regards
Adarsh KHi,
Please find below meta link notes which might help you.
Changing Organization Costing Methods (Doc ID 550640.1)
How to Change Costing Methods Standard Costing to Average Costing (Doc ID 331805.1)
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