MIRO Price difference book in Inventory acount

Hi,
When we book an invoice via MIRO, the amount difference between the PO and the invoice is book in the inventory account and do not hit our P&L variance account. Does anybody know which setting should be corrected so that we hit the P&L account for differences.
I've already checked OBYC for PRD and our account for variance is set up there.
Points will be awareded for help!
Thanks a lot
Martin

Hi
If price control is V in material master and if the stock balance is more than the invoiced quantity, then it will hit Inventory account only. If stock balance is less than the invoiced quantity, then the difference will be proportionately divided between Price variance and Inventory so that Inventory value is not unduly overpriced.
Jayaram

Similar Messages

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

MIRO- Price Difference

Dear Gurus,
My client requires in case of Any difference as per PO and Miro it is going to price variance inlcuding frieght variance and other charges and everything is going to price variance account but my client requires the material variance has to go the price variance gl and other variances like freight and other charges of import variance should go to other freight variance gl account.
Please help me in this regard how i can do this.
Regards
Sreenivas.P

Hi,
check out this link.
[http://help.sap.com/search/highlightContent.jsp]
murugan

Price difference in PO-invoice to different Consumer Account

Hello,
I have the following situation:
Purchase Order: 10 units x 1000 USD = 10000     (Account assigned : u201CKu201D)
Goods Receipt: 10 units (x 1000 USD) = 10000    (valuated GR against consumer account)
PO u2013 invoice:     10 unitos x 1100 USD = 11000     (Invoice with price difference)
1) Upon GR u2013 Accounting document shows:
420021 (consumer account)     10000
220021 (GR/IR)          -10000
2) Upon entering the invoice, SAP standard makes the following account movements:
123456 (Vendor Account)       -11000
220021 (GR/IR) =             10000
420021 (Consumer Account)         1000       (Price difference) - Goes to the same consumer account !
I would like to know if I can configure in the invoice account determination a diferent consumer account for the price difference so that the acounting document will show:
123456 (Vendor Account)                           -11000
220021 (GR/IR) =             10000
420055 (Consumer Account)         1000       (Price difference) - a different consumer account !
Anyone did this before? How, is it standard config of OBYC or does one need a user-exit to accomplish this?
Thanks for any reply,
Aart

Hi guys,
Thanks for your replies.
I customized in the OBYC the price difference account PRD (for the Valuation Category of the material) even changed for the particular material the Price control in the Material Master from "V" to "S", but still, the difference upon receiving the invoice (MIRO) goes to the same Consumer Account!
Maybe the PRD account only works in Stock Postings. Im using POs account assigned (Cost Center).
Any clues?
Thanks,
Aart

Miro hitting inventory and price difference

Dear All,
I would like to seek advice of the posting during MIRO on point 4 and 5 why there is a hitting on inventory account and price difference of the amount given? How system get the amount in inventory account and price difference account?
Really need advice.
1)
GR - qty 20
dr inventory $1500000
cr GRC $1500000
2) GI - qty 1 and now remained only 19 qty
moving price = $75,000
qty = 19
price unit = 1
value = $1425000
3) MIRO
dr GRC $1500000
cr vendor $1500000
4) MIRO say qty is 21 and amount no change
dr GRC $1571429
cr vendor $1500000
cr inventory $64626
cr price diff $6803
5) MIRO say qty is 20 and amount i enter $1507500
dr GRC $1500000
cr vendor $1507500
dr inventory $7125
dr price diff $375
thanks

refer my remarks in BOLD
4) MIRO say qty is 21 and amount no change
This scenario is not possible as you have taken GR for Qty 20 only.
*still you have added $ 71429 in GRC so this should be uploaded on Inventory ($71429 / 21 = 3401.38) hence Inventory account will get updated with $3401.38 * 19 (available stock) ie $ 64626 & diff of 21 - 19 = 2 * 3401.38 ($6803) will be updated in Price Diff account*
dr GRC $1571429
cr vendor $1500000
cr inventory $64626
cr price diff $6803
5) MIRO say qty is 20 and amount i enter $1507500
* Goods receipt is posted with 1500000 but vendor has presented invoice of 1507500 hence the additional cost ie 7500 has to be loaded on inventory but available inventory is 19 as 1 qty is already issued from stock hence (7500/20 = 375) for 19 qty inventory account will updated with $7125 (375*19) & for material which is already issued prior to taking invoice receipt ie 1 Qty (375 * 1) = 375 will hit to Price Diff Ac.*
dr GRC $1500000
cr vendor $1507500
dr inventory $7125
dr price diff $375

Price difference in miro

Dear All,
I have 2 scenario to book the price difference and I would like to know both impact.
Say this is based on standard price.
1) when the invoice amount different from the GR amount, I change the amount field in miro line item for each PO line item that already GR which got difference. The difference go to price difference account.
2) I do not care the PO line item which already GR but only manually book in price difference account in GL account tab for the difference between invoice and gr.
As the price difference will go to copa, may i know what is the implication or result for case 1 and case 2?
Thanks

Hi
There are n number of ways of doing things, In both of your above mentioned cases the differential amount will be debited to PRD or stock aaccount depending on your stock coverage.Had it been PRD as you say the amount will be fetched to Controlling as there is a definite expense recognised .Had there been Stock account there would be no amount transfer to COPA ,but eventually when you issue the material it is the expense account will will be debited and the amount will be fetched to Controlling .Thus in both the cases the accounting impact is the same it is only the realization time is different.
Regards
Sandeep

Distributing Price Differences posted with MIRO to production orders

Dear guru ,
I know DUV that distribute consumption differences from a physical inventory to production orders.
After the production order consumptions (mvt. Type 261) for these materials we posted the prices differences with MIRO between the purchase order price and the invoice.
Does exist a tool like DUV (or other) in order to distribute these differences in price to the production orders that have consumed these materials ?
Thanks in advance

To me it looks like the material ledger is the standard tool for doing what you want to do (although it doesn't actually post price differences from purchases to production order but rather distributes them to the receiving materials on the level of the actual price calculation)

Price Difference GL During MIRO

We have a scenario where we receive Invoice for a material (with MAP) after some time of GR for e.g., 10 to 15 days of GR. Mean while we consume some of the stocks already received. When we post invoice (MIRO) with some price changes to PO price, system checks the stock overview and posts the proportionate amount to Material account and Price Difference account (PRD), which is a standard behavior of SAP. But, we dont want the amount to be posted to PRD. We want to post the entire amount to material account only.
Can anybody suggest the workaround solution for this.
Thanks in advance.
Regards,
Bharathi

Hi
Another process, though manual would be, to activate the Material Tab in MIRO. There after, what ever, quantity is available in stock you can pass a debit or credit to material. However, it is not the suggested correct way as MAP will not be in propotion to existing stock quantity.
Regards
Sanil Bhandari

Enter Text in Price difference line item in MIRO

Hello,
My user wants to enter text in price difference account line item in MIRO. I tried to do it in MIRO simulation by doubl click on line item. But it does not show as we normally see in FI documents.
Please advise how can I enter text in price difference line item while doing MIRO. Since this account gets posted automatically.
Regards,
Tapan

Hi,
You can create substitution with exit in GGB1/ OBBH
In exit, give a popup for this price difference line item and in that popup user can enter the text and then fill that text in the line item.
Your ABAper should be able to do it.
Regards,
SDNer

MIRO R payment block without price difference

Dear gurus,
I'm stuck in the middle of a problem: please help me solving it.
I've done a MIRO related to a good receipt: payment lock has been set to "R" value in FI document. Invoice value is the same of good receipt value: no price difference at all.
What I immediatly check is this:
1) MRBR shows "X" in Blocking Reason Price column with a yellow background of the cell
2) MRBR difference column is 0
3) OMR6 tolerance for this CoCode are set only for PP and BD (but PP and BD are not appliable in this case because invoice exactly match good receipt)
Please guide me finding reason why invoice has been locked. That's not an isolated case, other examples happened in production environment.
How can I go on analyzing the issue? How can I find the reason why some invoices are blocked?
Thanks a lot!
Andrea

Hi
Another reason I could think of was due to tolerance limit AP being set up which checks the invoice amount at item level against the PO item level amount. If there is a mismatch at item level as well, Block Reason R is set up.
You may want to check the tolerance group set up for your company codes as per the document below:
http://scn.sap.com/community/erp/logistics-mm/blog/2014/04/18/invoice-tolerance-limits--an-insight--part-1
Thanks & Regards
Sanil Bhandari

Reg:- Price difference

Dear All
In purchase order we maintained the exchange rate of 88.1 (Exchange rate Check box was not ticked) and the Po was in Currency GBP. When Migo was done with the exchange rate was 79.00 and while doing Miro the exchange rate was 81. So there is a rate difference of Rs 1. But now my question was this difference exchange rate is ¾ amount is posted to Material account and ¼ was posted to Prd Account.
As per my knowledge if my material price control is V the entire amount of price difference should be posted to material account but why it is posting ¾ to material account and ¼ to prd account. Is there any configuration changes to be made?
Please help regarding this and maximum points will be awarded for helpful answer.
Regards
Edited by: vinay bhaskar on Mar 12, 2008 11:54 AM

Hi Vinay,
The settings will remain same. But the thing is when you do MIRO if there is price variance( normal or ex rate diff) then the system will auto check the availability of the quantity of that material involved. If there is suffcient quantity to the extent of MIRO quantity then it will post to the inventory account otherwise it will post proportionate value to inv account to the extent it is available.
It seems in your case before you post miro.... 25% of the quantity is already consumed to order or cost center, whatever so and hence the posting happened to prd account to the extent of 25%...
Hope this clarifies.
Regards,
Velumani

Price difference posting at the time of IR based on GR

Hi,
I had a PO for 10 pieces @ 10, GR for 10 pieces @10, but i got a invoice from vendor for 10 piece @12.
so what can be the possible entries at the time of IR for Price difference; like, it should be posted to material account / it should post to price difference account. How can we configure the same? is price control indicator do play any roll here?
Please try to give as much as information as you can.
Thanks !

Hi
While posting invoice through MIRO, system takes into acccount either Stock or Price differences. To understand more.....
If the stock is available, then the system transfer that amount to inventory. if the stock is not avaiable system transfers that amount to price differences account.
If the stock is partly available, then system generates 4 line items. while doing invoice in the moving Avg price(V)
GR/IR Account               DR
Inventory acccount        DR (In Case of Price increase due to escalation clause)
Price diff. account          DR (In Case of Price increase due to escalation clause)
          To Vendor account
          To Inventory acccount        DR (In Case of Price decrease due to escalation clause)
          To Price diff. account          DR (In Case of Price decrease due to escalation clause)
In the above entry only one will be applicable regarding diffrences posting either price decrease or price increase.In the case of Oil (HSD)these fluctuations are very common.
Edited by: ANJIREDDYA on May 31, 2010 11:36 AM

Price difference account at the time of 122 movement

Hi,
PO qty 1000
GRN 1000
MIRO 1000
credit Memo 1000
122 material Doc 1000
( No change of price during thiese transaction through MR21 )
At the time of 122 document creation , the accounting entries are going in to price diff a/c instead of inventory a/c.
can any one confirm the resons behing a/c entries hiting price difff a/c.
Rgds,
Pradeep

Hello,
I think While crdeit memo system will hit Price differe account, Please clarify how the Subsequent debit/Credit works.
Suppose you have ordered 100 kg of a material. The vendor invoiced you $1 a kg, being an invoice of $100.
After a while he notices that he should have invoiced you too much or not enough. He tells you he made a mistake and agrees with you he can send you an additional invoice/credit memo for the invoiced quantity with the price difference. This will be posted as a subsequent debit/credit.
The subsequent debit/credit is an additional invoice/credit memo where only a price difference is posted for a certain quantity without influencing the invoiced quantity in the system.
After the posting of the subsequent debit/credit, you still have 100 kg invoiced but for a unit price of $1 +/- the additional correction.
Suppose you have ordered 100 kg of a material. The vendor invoices you 105 kg. You don't agree. He should send you a credit memo for 5 kg.
With a regular credit memo, you'll end up changing the invoiced quantity.
After posting the credit memo you'll have an invoiced quantity of 105-5=100.
In short:
- a subsequent debit/credit will be visible in the system as an invoiced price difference for an existing invoiced quantity. The invoiced quantity is not touched. The quantity you enter during posting is to indicate to what quantity the price difference relates.
- a credit memo is a correction of the invoiced quantity
Regards
Mahesh Naik

Price Difference from PO

Hi all,
We have encountered the following issue:
Suppose that we valuated a material XX with standard price 100, but while creating the PO, we use the price of 90, while doing GR, the price difference 10 went into the price diff GL account. Currently in our system, it is configured to go into PSG in Controlling.
Is there a way in which we can adjust this price diff GL account into our Balance sheet? So that the inventory is 90 and not 100?
Thank you very much for your help
Regards, Erwin

Hi ,
If price control is "S" .. which means standard price ... the journal entry made at the time of goods purchase it..
Inventory   A/c -
Dr                          100    ( Balance Sheet )
GR/IR A/c -
CR                        90    ( P&L)
Price Difference -
Cr                        10   ( P&L) .
When inventory is booked higher at purchase price , then difference needs to be considered in profit& loss a/c .. as we do double entry system of accounting .........
Hence , price difference cannot be a balance sheet account as per accounting principle ... no SAP logic in this..and inventory balance in balance sheet has to be at 100 ( standard price )..
But , if you have a ML in place.. then price difference is adjusted and inventory becomes 90 .. if the materials remains in stock , inventory is now valued at actual price .... so price in balance sheet will be 90
This entry only happens during month end closing Material Ledger run... not at the time of GR entry.
Hope it clarifies
Regards
Sarada

Logic of price difference posting

Hi Experts,
I want to understand a scenario where:
1. we have a price variance due to insufficient stock at IR for a PO related to Raw material. ( it hits the Price Difference(P/L) A/c (PRD))
2. The raw materiel has insufficient stock since it has been issued to production order and not sold as yet but we are booking a gain or loss in P/L.
Now the question is that is inline with correct accounting since we are realizing a gin or loss even though the item still lies in our books? Shouldn't this price difference value put an impact on production order instead so that the product cost is more accurate?
Please help me understand as this point has been raised by Finance Dept.
Thanks,
Safi

Hi,
1. When you issue material to production order, what entry gets posted? its Consumption A/c -- dr and Inventory a/c -- cr
now as far as inventory is concerned qty issued to production has lost its identity since it has been issued.. it need not be 'sold'.
In Inventory Valuation you can valuate only that inventory which is not issued and intact in Balance Sheet.
so, this perception is completely wrong that inventory is issued to production but still not sold so can be considered for other calculations.
2.
Lets look at the scenario why difference has occurred. let's take a example
1. PO -- Qty. 10 @ $ 100
2.GR -- Qty. 10 @ $ 100
with this entry Material MAP = $ 10.
3. Issued to production - Qty. 2 @ $ 10.
4. Stock available at this stage is Qty. 8 @ $ 10.
5. IR. -- Qty 10 @ 120 -- now system will post price difference of (qty 2 * diff $ 20).
Now, at stage 3 you have issued qty to production order so its been consumed, now at IR you realized a difference in PO price and IR price. (understand the time difference during all transactions) but this difference has occurred for Qty. 10 where as to cover that difference you have only Qty 8 left in your stock hence the price difference to the extent of qty 2.
Stock price will be very unrealistic if you load difference to the extent of Qty 2, on the Qty. in stock which is Qty. 8.
By far this is the correct way accounting..
In SAP terms this is called as "Material with MAP without Stock Coverage"
http://help.sap.com/saphelp_46c/helpdata/en/a8/b994d9452b11d189430000e829fbbd/content.htm
I hope it clarifies..
Regards,
Sayujya

MIRO Price difference book in Inventory acount

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