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?
Thanks,
Ranjith

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]
Regards
Kailas Ugale

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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.
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

Wrongly picking price variance account

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,
Thanks for your reply, but OBYC and OMWB are the same. from omwb we go to t.code obyc and many others. I have checked the account maintained in PRD.
What else can be the possibility.

Purchase price variance account

Hi,
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.
Let me know your inputs here.
Thanks,
Regards
Raghavendra

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.
Regards
Merwyn

Foreign Exchange difference posted to price difference account at MIGO

Hi,
We have a problem regarding posting foreign exchange rate difference at the time of GR.
We are costing materials at the beginning of year, and purchases made during the year as per PIR will result in legitimate price difference which is posted to price difference account. Thatu2019s working alright.
Now, due to new business requirement, we maintained PIR in MXN (Mexican peso), & standard cost is converted in local currency USD as per exch. rate maintained in OB08.
Now, when we do GR, the difference of foreign exchange at the time of Std. cost & GR date is posted to Price difference account instead of foreign exchange account. For eg. Std .cost of material A is 1000 MXN, and GR cost of material X is also 1000 MXN, however corresponding USD is different because of different foreign exchange rate.
Will appreciate if someone can suggest on how can we post it to exch.rate diff.account instead of price diff. acct. ?
Thanks,
Nirav

Hi,
Thanks for your replies.
We have already maitained exch.rate GL OBYC-KDM, which is successfully posted with the exch.rate diff.arising out of GR & IV at the time of IV.
I'm talking about price difference in Std. cost & GR value because of exch.rate diff.
For example, Std cost for Material A is 1000 MXN converted to $100 with exch.rate of 10. Now, GR happens with 1000 MXN converted to $200 with prevailing exch.rate of 5. Please note that std. cost and GR is the same price 1000 MXN, but USD amount is changed resulting $100 gets posted to PRICE DIFFERENCE Account, whereas we want to post it to FOREIGN Exch. diff.A/c becuase it's arising out of exch,rate difference.
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While posting MIRO price difference account is not determimg for price vari

Hi Sapients,
Please solve the production issue which we have faced yesterday while doing month end closing
In one P.O 4 items are there,User has posted entries in below sequence
Material type is TRADING GOODS
1)first MIRO with QTY 10 @100$ each,Later
2)MIGO has done with QTY 10 @100$
Raw Material account -
1000$
to GR/IR CLEARING ACCOUNT -
1000$
2)User has reverse the MIRO transaction with QTY 10 @ 100$ each.(with refer to step1)
3)Finally he post MIRO with QTY 10 @ 90$ each, so here ther is no qty variance has come only price variance has come, so when posting the difference is not going to price difference and the entry is paasing like this
GR/IR CLEARING ACCOUNT -
900$
TO Vendor 900$
If u see in step 2 GR/IR having 1000$, but in step 3 while MIRO posting GR/IR as 900$ so for the remaing balance 100$ not going to price variance .I Belive the entry in step will be like this
GR/IR CLEARING ACCOUNT -
1000$
TO Vendor 900$
TO Price difference 100$.
Kindly give solution why it is not going to price difference it was happening only for item 2 & 3 only for 40 iem it is posting correctly to price difference account.Please advice me why system behavig differently for each item.
Thanks & Regards
YSR

Hi Padmasri,
Thanks for your explanation. Ok. if the price is maintained in S, does that mean the price difference would get posted only to PRD. In other words, if price indicator is V, is that the only time when the price difference gets posted to stock account. In case if there is no sufficient stock or if there is negative stock at that time, that's when the amount would get posted to stock loss or gain account. Please suggest if I've understood the concept right.
Hi,
The PRD will trigger when the standard price maintained in the material mater record is different from the price in MIGO . The other chance is the material is maintained with MAP and MIRO done before GR ,The value of the quntity (not available in stock )
will get posted to PRD. I hope this will resolve your issue. Thanking you
You had suggested: The other chance is the material is maintained with MAP and MIRO done before GR ,The value of the quntity (not available in stock ) will get posted to PRD. I hope this will resolve your issue.
You are right: I forgot to mention that the price indicator is V. The other point is we purchase the materials from an internal vendor, as and when the materials are dispatched from the main storehouse in Sri Lanka, there is an advice that is created in the system and that is interfaced and parked in the system. However, normally until the GR is done IV will not happen. But there could be a chance, as the advice gets created within 24 hours. However the material to reach the godown in our warehouse will take more than 24 hours as the goods have to be shipped from SL, so IV is possible before GR.
Regards,
Soujanya

Change the price variance account

Hi,
We have an issue here. When we do posting using MB1B, movement type 309 to transfer from 1 material A ($5.00) to another material B($4.00), there is a price variance $1.00 auto post to a GL account C, and the $5.00 and $4.00 will post to the stock account.
But currently we want to change this price variance GL account from account C to another account D.
Can anyone guide me how to do so?
Kindly please advise. Thank you.

Hi,
In OBYC for the transaction event key AUM, change the GL account.
Regards,
Ramakrishna

Invoice price Variance account in Accounts payable Impact

There is PO raised for certain amount say 20 USD and fully received and
billed for 1 QTY and zero amount.
SO when i check it is going to Invoice price variance. Client does not want to make payment for
zero amount....
Whaat is impact in this scenario if we do not make payment and amount is opened in IPV....
thanks

Hi,
Thanks for your reply, but OBYC and OMWB are the same. from omwb we go to t.code obyc and many others. I have checked the account maintained in PRD.
What else can be the possibility.

GRPO not posting to Purchase Variance Account

SBO Version: 8.82 PL05
Forum,
I have the following scenario:
The Goods Return was not created from a Goods Receipt PO, however its value was €249.83 and this is the value shown on
the open item list.
The journal posting relating to this return details a value of €260.77. Thus we have an imbalance between the open item list
and our general ledger.
The €260.77 represents the standard cost of the returns and this is the value we would have expected to have been credited to stock. €249.83 should have been debited to Accruals GRNI Stock and the difference should have been written off to Purchase Price Variance and historically we can demonstrate that this is what has happened.
Would anyone be able to assist?
Orla

Hi Orla,
If the Goods Return is independent from GRPO, do they share the same posting date?
Thanks,
Gordon

Entry is posted to price difference account if IR is processed before GR

Hi Experts,
The user is facing the following issue " whenever the Invoice Receipt is recorded before the Goods Receipt, the total amount is booked on price difference account. This is in case of inter company transactions.
Please share your thoughts
Warm regards,
Murukan Arunachalam

Hi
Please, see SAP Note 308008 - FAQ: Posting logic: GR/IR clearing account,
It says in question 1.
"Remark: Invoice receipt before goods receipt
If no goods receipt has occurred yet, the entire invoice value is posted to
the GR/IR clearing account.
GR/IR clearing value = GR value/GR quantity * IR quantity."
I hope this helps you
Regards
Eduardo

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

Some amounts was posted to Price Diff Account even tho there was no price d

Hi Experts,
Users have a few AP Invoice which they have some typo, thus they canceled it by copying the whole invoice to AP Credit Note (w/o changing anything).
But when they try to cancel it, it says u201CGL Account is missingu201D.
After I try to search high and low for this GL Account, I couldnu2019t find anything. Thus I asked the users to u201CRight click > Duplicateu201D the rows in the AP Credit Note (delete the original), and then I was able to add it successfully OK.
But after the AP Credit Note is added, we checked back the JE posted by system, we realized some amount was posted to the u201CPrice Difference Accountu201D (which is not correct, because there was no price differences between the invoice and cn at all).
Have you experienced smth like this before?
Warmest Regards,
Chinho

Hi Chin,
The target Document uses the same G/L accounts than the Base Document, and maybe the G/L account was entered in the Account Determination after the Invoice was added.
regards
Carin
Edited by: Carin Botha on Jun 1, 2010 9:56 AM

Price Variance at the time of MIGO

Hi All,
we have scenario where at the time of GR Mvt Type 101 system has posted below accounting entry
Stock Account Dr 1,816.00
GR\IR Account Cr 1,816.00
Now at the same time user has returned the goods Mvt Type 102
Stock Account Cr 1,816.00-
GR\IR Account Dr 1,091.52
Price Variance Dr 724.48
Now we are not able to understand why system is posting to Price Variance Account any expert advise.
Thanks!!!
Regards,
Vivek Srivastava

Hi,
This might be because of the price change in PO.
If you change the PO net price, while reversing the document sytem get net price from PO.Check once price history.

"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.

Variances accounts - for Price variances

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,
Karol

Hi 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
Hope the above clarifies. Please assign points

GR posted to Price Variance account

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