FG value is going to variance account

Friends,
I have run the cost estimation for a finished product on 05.08.08. Then i have created a process order . The planned cost has come and the order was released, confirmed and goods were were received on 05.08.08(after the cost estimation). The posting period is july and august.
When i have checked the accounting information for the goods receipt, the COGM-FG is credited and Produciton is debited.
In the process order receipt , i am having a co product which is having a fixed price .
When i do the variance calculation, the cost price of the co product(say Rs 5.00) is actually going to the actual cost and there is no variance.But, for the finished product, the entire value for the FG( Say Rs 1,93,500) is going into the price difference.
In my view, it should go the variance because the cost estimation was done before the process order is released .
Can anyone help me to know what may be the reason?
regards, ebenezer

Dear Sheenaaz,
Could you please rephrase your requirement in steps, Its not clear exactly what you are looking for and what is your expectation.
I would appreciate if you put all in steps, So that anyone of us can help you out.
Regards,
Jain

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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.
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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

Purchase price variance account

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I have a purchase order created in 2007 and movements done in 2007.
I needed to reverse the GR, i created additional line items on the purchase order with returns flag. When i did GR it has hit a price varinace account.
If i do 102 against 101 does it hit a price variance account if the material value in MBEW table has changed.
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Hi,
If there is a change in the MBEW table for the said item, then you will hit the price variance account, even if you do the reversal using 102.
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We are having a problemwith an invoice in payables module. It is crediting the exchange rate variance account in invoice accounting but is not selecting the right gl code due to which we are not able to generate accounting for this invoice. Can anybody tell me where do we define Exchange Rate Variance account?
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Hi Nehmat,
this is an intended behaviour ...
Your purchase order is in Foreign Currency ..
Your Invoice matched to Purchase order is in Foreign Currency ...
Difference between the PO and INV exchange rate has caused Exchange rate variance ..
The entered currency in the above case is Foreign currency therefore entered value for ERV line will be zero ... whereas the accounted line would have the computation for ERV done in functional currency....hence ERV line is acceptable for this case.
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GR posted to Price Variance account

Hi Experts,
I have a material whose price control indicator is "V", Moving price is $1, Total Stock is zero, Price Unit is 1, Standard price is 1, Total value is zero in material master.
I have created standard PO with two line items.
Line 10 is for the quantity of 1 PC at the rate of $100 per PC.
Line 20 is for the quantity of 1 PC at the rate of $100 per PC. Additionally line 20 is account assigned Q "Proj. make-to-order". No other differences.
I have posted GR for line 10. Accounting details are Stock account $100 and GR/IR clearing account $100.
I have posted GR for line 20. Accounting details are Stock account $1, GR/IR clearing account $100 and Price variance account $99.
Any guess why the system posted line 20 in price variance account?
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Hi,
I have a material whose price control indicator is "V", Moving price is $1, Total Stock is zero, Price Unit is 1, Standard price is 1, Total value is zero in material master.
its indicate that you have two material code price control V and S but situation is that both material don't have stock and price is same 1$
Now when you do MIG) for second material which has price control S and Po price is 100$
means you have price difference of 99$ ( po price -Material price)
so it will price difference account and its SAP standard
check following sap link also with example
[http://help.sap.com/saphelp_46c/helpdata/en/a8/b994b2452b11d189430000e829fbbd/content.htm]
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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
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Cause: The accrual account that you entered or that was derived is invalid.
Action: Enter a valid accrual account.
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Cause: The variance account that you entered or that was derived is invalid.
Action: Enter a valid variance account.
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Please check
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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."
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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."
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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.

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Hi Experts,
I am trying to post the Invoice through MIRO related to stock. there is a bit price difference. Hence it is going to Price variance account. But the Account maintained for the valuation class of that material in OMWB is different from that being picked up while simulating invoice(MIRO). How is this possible. Is there any other setting from where it is picking up other account.

Hi,
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Hi amr,
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Hi All,
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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Hi 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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GRN - A001 MYR110 x 100 units
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FG value is going to variance account

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