Material ledger Vs Purchase price difference....

Hi Experts,
My client activated ML, maintaind price control is S, monthly he is charging all purchase price variance is to product through ML RUN....but in some amount is flowing to copa, because that Purchase price diff account is assigned in OKB9 default to CO-PA(Cost ele cat 01)....
After checking all the line items those are flowing to co-pa , those are internal tranfer from one material to another material(through migo), then any difference is there that amount is flowing to copa(SFG to FG).
whether it is correct or not?
please clear my confusion....
Thanks,
Chandu
Edited by: G.C.S.Reddy on Jul 1, 2011 10:45 AM

Huh, that's weird. I'm discount upgrade eligible but if I weren't, that would be mighty frustrating. I feel for those of you that are not discount eligible... I guess that would be enough for me to wait and buy direct from Apple, however or whenever Apple is selling phones (too much misinformation out there on this subject and don't want to open another debate).

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Purchase price difference between SAP R/3 and BWI report

Hi
Purchase price difference between SAP R/3 and BWI report
What is purchase price variance ?, my user is telling that in SAP R/3, purchase price variance 100 and in BWI report it is 200 .
Any other terminologies are there for purchase price variance ?
And any idea wherefrom BWI will take this purchase price variance ?
Thanks In advance

Purchase price variance is he difference in price between the amount paid to the supplier and the planned or standard cost of that item
Request you to check your data first in your Cube/ODS, better would be to check in the data container where the data is first loaded.
Also check if this field is getting directly loaded as 1-to-1 mapping.

Material Ledger - release actual price as the standard price for the next-

Hi Gurus, Sap Library /documentation about Material Ledger says:
"At the end of the period, an actual price is calculated for each material based on the actual costs of the period. This actual price is called the periodic unit price and can be used to revaluate the inventory for the period to be closed. In addition, you can use this actual price as the standard price for the next period."
How Can I do that? i've calculated the new actual price but i could release it as a new standar costo.
Kind Regards
André

Hi Both,
I think there is something else to add to this, the new PUP price can only be applicable in the period N+2 where N=Period of closing. This is something that is not specifically mentions in SAP documents.(not that I know of ) but I found it the hard way!
Cheers

Can we bring MAP of Material Master for Purchasing price.

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hi..
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Material Ledger-Periodic Unit price-Overhead cost calculation

Dear Friends,
My client using ML periodic unit pricing for reporting purpose.
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Ram

HI Ajay,
Thanks for your reply.
I can find the O/H rates as you said but none of the O/H rates are matching with periodic Unit price cost analysis.
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Ram

Material purchase price variance and different cuurrency in IR

we have a requirement to split price variance and freight purchase price variance in goods receipt stage, but the problem is condition type can not be assigned COPC original group. so what are the tables I can use to split the two ppvariance using customized report?
also in GR, accrued freight now is using month end rate, but we want it to be planned rate(another exchange rate type), is it possible to configure?
during invoice recept, standard can't maintain different currency from PO currency, is it possible to reconfigure the system to use another currency for invoice recept?

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 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

Material Ledger Postings - Contradicting IAS 2?

Hi All,
Material Ledger captures both Price Differences and Exchange Rate Differences and allocates these according to Stock and Consumption.
During the month, when we encounter Price and Exchange Rate differences, these are held on the P/L. At month-end, when we close ML, the Price and Exchange Rate differences 'attribuatable' to Stock are moved from the P/L to the Balance Sheet (or "Capitalised").
This is seemingly contrary to IAS 2, which clarifies that Exchange Rate differences cannot be capitalised on stock. Is that an acceptable accouting treatment for (say) external reporting. Certainly SAP does follow IAS, so I'm probably just missing the point?
Reproduced Verbatim:
"Inventory cost should not include: abnormal waste, administrative overheads unrelated to production, selling costs, foreign exchange differences arising directly on the recent acquisition of inventories invoiced in a foreign currency and interest cost when inventories are purchased with deferred settlement terms."
Can anyone shed light please?
Regards.
Venky.

Dear Ram
Thanks for your reply.
Both the production orders are for the same material, same BOM was used and the only difference is the goods receipt was not made for one productin order. We need to hold that order for 2 weeks. Fortunately this happens in the month end and the BOM is very small by which we could able to find this difference.
In CKM3 w.r.t actual cost copmponent split the value of one number is 4500 instead of 4800. The total consumption difference for the two orders are shown as the price difference and the price is calculated for 1 EA of the finished material in stock.
My requirement is since we have given to stock only one number the consumption difference has to be posted to 1 EA. and the consumption difference for another one should be loaded to pending production order.
or is there any way to post the price difference to pending production orders.
Thanks
Soundar

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

Price difference from Raw Material

Hi,
I have activated material ledger, Price control for ROH V, A/c determination is 2 and for SFG & FG Price control S & A/c determination set as 3
Production having set of RM material & SFG Material,
and I have price difference from RM purchase ( GR/IR) ,
Price difference from Production order settlement so on..
i need clarification that How standard system behave when ML activate Price difference loaded to ROH , SFG and FG material.
rollup to higher material
and further i need separate GL for price difference GR/IR & Order settlement.
Kindly do the needful.
Regards.
Vinu

Hi Vinu,
Please take a look at the sap note 721360 which provides very helpful information about
MAP-controlled materials and actual costing.
In addition take a look at the sap note 81682 and 689189 which are useful too.
Regards,
Maria Luisa

Quantity & price difference between purchase order and goods receipt

goods receipt against purchase order
inventory a/c    dr
   gr/ir clearing a/c    cr
if there is any quantity & price difference in between PO and GR ex- PO order -1000 bags @ rs 10 but good receipt 900 @ Rs 10
then how the price difference and quantity diference treated in sap
what will be the entries, how we adjust it.
regards
siba

kindly note that depending on the Moving average or standard price (price control flag in mm01) the difference will either get adjusted with the material or to the price difference account accordingly.
in the example for standard price
         gr for po :10 bags @ 11
dr stock 100
cr gr/ir 110
dr price diff 10
the above is in case of material maitained at 'Standard price' in the mm03.
regards
eashwar

Material Ledger for Stock Transfer Postings

Hi All,
I have a question about the way material ledger is calculated for stock transfer postings (movement type 641). I will give an example to illustrate this issue:
Material A has a Standard cost of $10
Material B has a Standard cost of $8
During the month 100 units were transferred from material A to Material B. This created a financial posting as follows:
Credit Material A -          $1000
Debit Material B -           $800
Debit Price Difference    $200
This price difference of $200 was used in the calculation of Actual cost for material B
However, the Actual Cost for Material A was $9. I would have expected the system to use this actual cost to calculate the difference to be posted to material B. Hence the difference used in Material B should have been $100 {(9 8) X 100} and not $200.
Has anyone had a similar issue, or know how the system resolves this (if at all)?
Points will be rewarded for relevance.
Thanks

Dave, I see that your process is slightly different to mine. We do not revalue inventory at month end, instead the material ledger program posts the revalued amount to a reserve account and the actual cost is only a statistical entry. The material ledger calculation is reversed automatically in the new month and the standard price is used for valuation.
I think this might make it difficult for the system to value STO's at actual. I may need to check with SAP.
Thanks

Purchase Price Comparison by Items

Hi Experts,
Need your advise for a report. I need a report which would show the two previous purchase prices of items to compare them. Something like below:
Latest Purchase Price
Previous Purchase Price
Difference
Item Code
I am able to create the report per item but could n't for all items or a list of all items.
Can you help please?
Thank you.
Best Regards
K
The report for single item as input parameter is:
/* SELECT FROM [dbo].[PCH1] T1 */
DECLARE @Item AS varchar(50)
/* WHERE */
SET @Item = /* T1.ItemCode */ '[%0]'
Select TC.Item, TC.MDate, TC.MPrice [Last Purchase Price], TD.NDate, TD.NPrice [Previous Price], TC.MPrice-TD.NPrice [Price Diff]
From
(Select TA.Item, TA.Date MDate, TA.Price MPrice From
(SELECT T1.[ItemCode] Item, T0.[DocDate] Date,T1.[Price],Row_Number() Over (Order By T0.[DocNum] desc) as RowNum
FROM OPCH T0 INNER JOIN PCH1 T1 ON T0.DocEntry = T1.DocEntry WHERE T1.ItemCode = @Item
)TA
Where TA.RowNum = 1) TC
INNER JOIN
(Select TB.Item, TB.Date NDate, TB.Price NPrice From
(SELECT T1.[ItemCode] Item, T0.[DocDate] Date,T1.[Price],Row_Number() Over (Order By T0.[DocNum] desc) as RowNum
FROM OPCH T0 INNER JOIN PCH1 T1 ON T0.DocEntry = T1.DocEntry WHERE T1.ItemCode = @Item
)TB
Where TB.RowNum = 2) TD
ON TC.Item=TD.Item

Dear Kanu, i was searching for the same query and then designed this one;
this will give you the recent and the last purchase date (from GRPO) and their rate differences, with the document number of ALL ITEMS from item Master Data (of-course NULL to which are not purchased/received). i usually add queries through command on CR and then do the formula stuff (like suppressing etc). therefore forwarding you the same.
select ItemCode ,ItemName,
---- Last GRPO No(by Document Date) -----
(Select top 1 PDN1.DocEntry from PDN1 INNER JOIN OPDN ON PDN1.DocEntry = OPDN.DocEntry where ItemCode = OITM.ItemCode order by OPDN.TaxDate desc) as LatestGRPONo,
-----LATest PUrchase Date ---
(Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry where ItemCode = OITm.ItemCode order by opdn.TaxDate desc)
as LatestPurchaseDate_Postingdate,
-----Last Purchase Price ----
(Select top 1 PDN1.Price from PDN1 INNER JOIN OPDN ON PDN1.DocEntry = OPDn.DocEntry where ItemCode = OITm.ItemCode order by OPDN.TaxDate desc) as LastPurchasePrice,
------Previous GRPO ----
(Select top 1 OPDN.DocEntry from PDN1 INNER JOIN OPDN ON PDN1.DocEntry = OPDN.DocEntry where PDN1.ItemCode = OITM.ItemCode and OPDN.TaxDate = ((Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry
where ItemCode = OITm.ItemCode and OPDn.TaxDate < ((Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry where ItemCode = OITm.ItemCode order by opdn.TaxDate desc)) order by opdn.TaxDate desc))) as PreviousGRPONo,
-----Previous Purchase Date
(Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry
where ItemCode = OITm.ItemCode and OPDn.TaxDate < ((Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry
where ItemCode = OITm.ItemCode order by opdn.TaxDate desc))
order by opdn.TaxDate desc) as PreviousPurchaseDate,
------ Previous Purchase Price
(Select top 1 PDN1.Price from PDN1 INNER JOIN OPDN ON PDN1.DocEntry = OPDN.DocEntry
where PDN1.ItemCode = OITM.ItemCode and OPDN.TaxDate = (Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry
where ItemCode = OITm.ItemCode and OPDn.TaxDate < ((Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry
where ItemCode = OITm.ItemCode order by opdn.TaxDate desc)) order by opdn.TaxDate desc)) as PreviousPurchasePrice,
------ Difference
(Select top 1 PDN1.Price from PDN1 INNER JOIN OPDN ON PDN1.DocEntry = OPDn.DocEntry where ItemCode = OITm.ItemCode order by OPDN.TaxDate desc) -
(Select top 1 PDN1.Price from PDN1 INNER JOIN OPDN ON PDN1.DocEntry = OPDN.DocEntry where PDN1.ItemCode = OITM.ItemCode and OPDN.TaxDate = (Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry
where ItemCode = OITm.ItemCode and OPDn.TaxDate < ((Select top 1 opdn.TaxDate from PDN1 INner join OPDN ON PDN1.DocEntry = OPDN.DocEntry where ItemCode = OITm.ItemCode order by opdn.TaxDate desc)) order by opdn.TaxDate desc)) as PriceDifference
from OITM
Do let me know if this helps.
Regards.

Sales invoice Price difference

Hi gurus,
Please help me to solve this scenario.
I sale 10 units material for 100 each price to my customer.
But due to some problem if he returns my material. When we Replace the material there is a Price Difference.
Now we are using Moving Average Price.
now I want to sale that material again for 90 each price that will be less than price 100.
The main issue is: I can not change the (financial postings)invoice price when I replace the goods, this is legal requirement here
How would I handle this price difference.
Please help.
Regards,
George

Hi George,
You can maintain different pricing procedure for returns and assign that Pricing procedure in the transaction OVKK with the combination of Sales Area + return Document pricing procedure+Custpmer pricing procedure.
Maintain condition records for the condition types through VK11
I hope It will solve your problem.
Regards,
Murali.

Standard cost estimation after goods movement when material ledger is activ

Hi!
our client is activated material ledger, for some materials standard cost estimation is done till marking but not released.
goods movements have been posted for those materials.
Now system is not allowing to release the standar price for those material in the current period, as material ledger expects same price for entrie period.
what is the alternative way to update the standard price for those materials ( with out reversing the goods movements).
regs,
ramesh

Hi Ramesh,
When you are using Material Ledger, after goods movemnets for materials, no need to change the standard cost estimate as Actual costing run will take care to derive the PUP price.
If there is no standard cost estimation release for sold materials (e.g.FG), you will get an error message duirng the billing document release to accounting. To aviod this error, if you are using split valuation (valuation types) and mixing ratios (CK91N & CK94), try with the below steps:
Create a new valuation type for the same material
Crate CK11N & CK94,
Run CK11N
Run CK24.
Then release the billing document.
Let me know if you need more details.
Thanks & Regards,
ADI

Material ledger Vs Purchase price difference....

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