G/L account-variances

Hi Guys
I have account details below as per MB5L              Currency           EUR
G/L Account        104200
G/L Acct Long Text Costs for finished goods
Materials          11.750.559,63
Stock Account      11.749.322,09
Variance           1.237,54-
I want to make Vaiance as 0 and stock account is equals to Materials account value
How can I Track variance caused material documents or Accounting documents
How I can make stock account is equals to Materials account value
Thanks In advance
Babu

hi,
there may be many reasons:
1. If you have forex, then rate may change in between...
2. You can have manual price diff..
3. FI docs posted improperly...
4. diff. in price between each document...
5. Qty changes...
you have to check each document inorder to check the root cause...
or check the PO hisrtory tab..and check where there is diff...
Regards
Priyanka.P

Similar Messages

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.

Item Group Account Setting

Hi To All,
I am creating a Item Group in 2007B , where in Accounting Tab i have to Set different Account named as
Expense Account
Revenue Account
Inventory Account
Cost of Goods Sold Account
Allocation Account
Variance Account
Price Difference Account
Negative Inventory Adjustment
Inventory Offset - Decrease Account
Inventory Offset - Increase Account
Sales Returns Account
Purchase Account
Purchase Return Account
Purchase Offset Account
Exchange Rate Differences Account
Goods Clearing Account
G/L Decrease Account
G/L Increase Account
WIP Inventory Account
WIP Inventory Variance Account
Expense Clearing Account
Expense Offset Account
Sales Credit Account
Purchase Credit Account
Incoming CENVAT Account (WH)
Outgoing CENVAT Account (WH)
in Journal voucher only Allocation account and account of tax will be affected in A/P Sales or Purchase invoice.
can any one explain each and every account of item group?
I want to know that role of every account in sales and purchase and also want to know that where it will give any empact on balance sheet or profit loss or on other report?
Thanks in Advance

Hi Sandeep,
you will find explanations with examples for most of these accounts & where the postings come from in the document 'Continuous Stock in SAP Business One 2004'. There have been additions in the GL account determination since & you will find info about those in either of these documents:
How to Determine G/L Accounts 2005 SP01 - EU
How to Determine G/L Accounts 2005 SP01 - US
The 2007 on-line-help will also be useful.
Click [here|https://service.sap.com/smb/sbo/documentation] to get to the documentation resource centre.
You will also find archived Expert Empowerment Sessions useful. Click [here|https://psd.sap-ag.de/PEC/calendar/] for those. Tick the box 'Archived Sessions Only' & enter the search criteria.
All the best,
Kerstin

Tax Accounting in payable invoices

Hi
In payables, a tax accounting on an AP invoice is defaulted from the tax code setup.
Unlike charge account, variance, etc the TAX account cannot be modified using the supplier account generator. The requirement is to have tax accounts hitting the same Balancing segment as the charge line.
Ex. An invoice has
Charge          01.1000.000          60
Charge          02.1000.000          40
Tax          01.1200.000          10
Liability     01.2000.000          70
Liability     02.2000.000          40
The requirement is
Charge          01.1000.000          60
Charge          02.1000.000          40
Tax          01.1200.000          6 (split into the BU segments)
Tax          02.1200.000          4
Liability     01.2000.000          66
Liability     02.2000.000          44
Can anyone suggest a workaround for the same. Multiple tax codes would not be a good option here as the balancing segments are many.
Can Subledger accounting allow to change the tax accounting entry as per the requirement. If so kindly provide some inputs
Thanks
Archana

It can be achieved in SLA.
Event as Invoice
Journal Line : TAx
ADR : Set a condition on basis on BSV in liability account
Hope it works.

What is differnce between charge account,budget account

Hi,
In purcahse order we have four accounts ,Charge account ,budget account ,variance account and accural account,
Pleae any help what is the differnce between these account when these will effect in gl.
and also in po_distributions i always confuse encumbrace amount filed is there.
can any help detail description about encumbrance when it is generated in po.
Thank's

Hello Mukesh the comments givan by Amol and Siva kumar are correct.
Here I am telling you how these accouts arer wrking in sales order and at billing and delivery.
Our reconsilation account is reconsile with customer that why when you create the sales order you are mentioning the customer at this time reconsiation account works.
Whenever you doing any posting there is an accounting entry is mae in accounts book right .
At the time of Delivery and billing both the accounts are affected as per the accounting rule .
I hpoe this will you help you
Regards
ravi

Raw material cost

hi guys
iam pp guy,how the RM cost updated from purchase order ,can anybody explain detail with tcode

hi
the updation of price in material master is depend on the price control
there r two price controls
Standard Price
Valuation using a standard price has the following features:
All inventory postings are carried out at the standard price
Variances are posted to price difference accounts
Variances are updated
Price changes can be monitored
If a material is assigned a standard price (S), the value of the material is always calculated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in valuation.
Moving Average Price
Valuation using a moving average price results in the following:
Goods receipts are posted at the goods receipt value.
The price in the material master is adjusted to the delivered price.
Price differences occur only in exceptional circumstances.
Manual price changes are usually unnecessary. However, they are possible.
now from this the price is updated to material master and then this updated price is get picked up in material cost in pp
regards
kunal

Price control

Hi All,
I am new to SAP MM,
What is the main difference between standard price and moving average price, And While I am creating the Material (Material Type is Drinks) it will take Moving Average Price(V) Only, We cant able to change this, Why?
Thanks in advance,
Sudheer.

HI,
Use
In the SAP System, there are two types of price control:
Standard price
Moving average price
These two types of price control differ in how they handle price variances resulting from goods receipts or invoice receipts.
Integration
You determine the price control that should be used for a material when you create the material and enter the accounting data for it. You enter one of the following indicators in the Price control field to determine how the price is controlled:
S for standard price control
V for moving average price control
Standard Price
All inventory postings are carried out at the standard price
Variances are posted to price difference accounts
Variances are updated
Price changes can be monitored
If a material is assigned a standard price (S), the value of the material is always calculated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in valuation.
Moving Average Price
Goods receipts are posted at the goods receipt value.
The price in the material master is adjusted to the delivered price.
Price differences occur only in exceptional circumstances.
Manual price changes are usually unnecessary. However, they are possible.
If a material is assigned a moving average price (MAP), the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account; as a result, the moving average price and the value of the stock change.
If drinks is your material type then what habe you defined price control in OMS2? from which material type did you copy to create drinks as your material type?
Thanks & Regards,
Kiran

Delivery date of PR in past

Hello,
We are having one PR which is created by MRP run. PR is created with the delivery date in the past.
PR requested date   :20.02.2014.
PR release date       :19.02.2014
PR delivery date       :19.02.2014.
Planned delivery time : 1.
GR processing time    : 1.
We are using APO for planning.when i tried to create a PR manually for the same material, below dates are got picked.
PR requested date : 26.2.2014
PR release date     :26.02.2014
PR delivery date     : 27.02.2014
Can anyone explain this?
Thanks,
Sankar.

Hello Sankar,
PReq delivery date of the purchase requisition consider the WEBAZ. Fisrt check you have same GR posiing time in ECC and APO.During this process, the factory calendar is taken into account.Variances occur if WEBAZ and the calendar do not match in the both systems.
Also check when this PR was created by MRP. In your both the case PR requested date is different 20.02.2014 and 26.2.2014.
What is result when you create manaul PR in ECC?
Go to SPRO > Materials Management > Purchasing > Environment Data > Define Attributes of System Messages > System Messages - Here make message no. ME039 i.e. Delivery date is in the past as E= Error.
Best Regards,
R.Brahmankar

Cogs cost element

hi,
i read from forum that no cost element is needed for cogs.
"certain expense accounts are not meant to flow to Cost Accounting. Examples include Price difference accounts, variance accounts, and COGS or COS."
1) i still can see price difference account in ka03. why?
2) what does it mean cost element not needed for cogs? meaning cogs directly post to copa? if yes, what tcode i can see it being defined?
thanks

Hi,
1. Price difference account can not be made as a cost element. As generally this account you use to settle your variances to your product cost at the month End and following entry is passed in FI because of this :
Price Difference A/C Dr
To COGM A/C Cr
Generally in CO - PC, you can only get COGM not COGS. As, product costing only have cost of RM, PM, activity rates and Overheads. At the running of Std. cost, it doesn't has sales and dist. charges, which generally are getting captured from SD through condition types.
2. Also in COPA all above mentioend costs come through value fields in CO and sales and Dist. charges come through condition type from SD (connected through value fields).
So, for this reason also, COGS can not be created as a cost element as it can not be assigned to any cost object directly. You generally get COGS in COPA through report (through report painter).
Thanks & Regards,
Taral Patel

Allocate Landed Cost to Goods Receipt before Item is sold

Hi
Our Client would like to have a prompting to remind User to allocated Landed Cost before selling the Item as Users always make mistake and sold items before allocating landed cost to Goods Receipt resulting wrong posting of accounting entries to variance accounts.
Kedalene Chong

Hi,
we are discussing this topic also here in Austria, as a customer usually ships the goods the same day when having received, and the AP Invoice is posted some days later.
Our suggestion is a batch job that is used for period closing, which checks all shipments that were made before having posted the regarding AP Invoice, to bring a control report that sums the entries according to Item "Set G/L Accounts by" and the setup of freight costs for distribution method, so that this amounts can be balanced manually (or even better automatically) within G/L from variances to the according COGS accounts.
Basically we need the distinction between preliminary costs (goods are shipped without having posted AP Invoice) and final costs (AP Invoice is posted).
For the moment only manual journal entries from G/L account variances to COGS is possible.
Regards
Martin Fürst

Moving Average price & Std price

Hai friends,
Any body tell me the difference bet Moving Avg Price & Std Price...
Actually why we are entering the Std or MAP in Material master..
What is the Impact in PO...
Thanks
Ros

Hello Roshan,
Difference bet Moving Avg Price & Std Price...
Material price in Material master is represented by Material price Indicator, The main purpose of material price is to valuated the material stock for financial transaction in company. There are two procedures available in the standard system:
Valuation at standard price : The price is decided by the organization (Costing / Finance / Purchasing / Marketing dept) which is fixed for material, it will not be changed by any inventory or financial transaction, but you can change it with special price change procedure.
This std price is represented with price indicator S
Valuation using a standard price has the following features:
- All inventory postings are carried out at the standard price
- Variances are posted to price difference accounts
- Variances are updated
- Price changes can be monitored
Valuation at moving average price or (if the material ledger has been activated) periodic unit price : This price is not decided by any organization (but in come case it will decide i.e. to upload the initial stock) but it will automatically updated by the Invnetory transactions (i.e. Goods receipt, Invoice receipt) or financial transaction (Debit/credit material). It will keep changes automatically when there is price difference.
This MAP is represented with price indicator V
Valuation using a moving average price results in the following:
- Goods receipts are posted at the goods receipt value.
- The price in the material master is adjusted to the delivered price.
- Price differences occur only in exceptional circumstances.
- Manual price changes are usually unnecessary. However, they are possible.
Actually why we are entering the Std or MAP in Material master..
We are maintaining material price for material stock valuation and inventory transaction valuation.
What is the Impact in PO...
The material price does not have impact on PO, but definately it has impact on inventory transactions i.e. GR, GI, IR debit/credit material.
more info, <a href="http://help.sap.com/saphelp_46c/helpdata/en/47/60ff0749f011d1894c0000e829fbbd/frameset.htm">Price Control</a>
Hope this helps.
Regards
Arif Mansuri

Pricing types

hi
mm gurus
how we will decide that , for a particular material type whether we have to fix standard price or moving average price
thanks in advance
subramanyam

Hello,
You have a very useful information in the SAP help`(help.sap.com)
PRICE CONTROL
Use
In the SAP System, there are two types of price control:
Standard price
Moving average price
These two types of price control differ in how they handle price variances resulting from goods receipts or invoice receipts.
Integration
You determine the price control that should be used for a material when you create the material and enter the accounting data for it. You enter one of the following indicators in the Price control field to determine how the price is controlled:
S for standard price control
V for moving average price control
Features
Standard Price
Valuation using a standard price has the following features:
All inventory postings are carried out at the standard price
Variances are posted to price difference accounts
Variances are updated
Price changes can be monitored
If a material is assigned a standard price (S), the value of the material is always calculated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in valuation.
For more information, see Standard Price: Value Calculation.
Moving Average Price
Valuation using a moving average price results in the following:
Goods receipts are posted at the goods receipt value.
The price in the material master is adjusted to the delivered price.
Price differences occur only in exceptional circumstances.
Manual price changes are usually unnecessary. However, they are possible.
If a material is assigned a moving average price (MAP), the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account; as a result, the moving average price and the value of the stock change.
The moving average price displayed in the material master record is rounded off. For valuation calculations, the system always uses the exact price (stock value / stock quantity).
You can get more information in the help.
Best Regards,
Arminda Jack

Materials valuation

Hi,
what are the impacts of valuating a material to standard price or moving average price ?
Regards

Hi,
Use
In the SAP System, there are two types of price control:
Standard price
Moving average price
These two types of price control differ in how they handle price variances resulting from goods receipts or invoice receipts.
Integration
You determine the price control that should be used for a material when you create the material and enter the accounting data for it. You enter one of the following indicators in the Price control field to determine how the price is controlled:
S for standard price control
V for moving average price control
Standard Price
All inventory postings are carried out at the standard price
Variances are posted to price difference accounts
Variances are updated
Price changes can be monitored
If a material is assigned a standard price (S), the value of the material is always calculated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in valuation.
Moving Average Price
Goods receipts are posted at the goods receipt value.
The price in the material master is adjusted to the delivered price.
Price differences occur only in exceptional circumstances.
Manual price changes are usually unnecessary. However, they are possible.
If a material is assigned a moving average price (MAP), the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account; as a result, the moving average price and the value of the stock change.
Thanks & Regards,
Kiran

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

Is variance account needed for moving average item valuation?

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).
So I defined a variance account in G/L account determination, under purchase tab.
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,
Kevin

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
Dr Vendor MYR100
Cr Stock MYR100
Dr Purchase Offset MYR100
Cr Purchase Return MYR100
Shouldn't there be a difference capture of MYR10 to be debited to variance account?
Ok, Can you try this scenario
GRN - A001 MYR110 x 100 units
A/P Credit Memo MYR100 x 1 unit
The JE of the A/P Credit Memo is like the above.
After that, you do another A/P Credit Memo,
A/P Credit Memo MYR100 x 99 units,
My JE
Dr Vendor MYR 9900
Dr Price Difference MYR 1000
Cr Stock MYR 10900
Is this what you get? If yes, could you explain why?
Regards,
Kevin

G/L account-variances

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