PO Invoice price difference handling - accounting issues
Hi,
I am working for a distribution company that is selling right away the goods it bought. Therefore we first receive the goods before creating a PO and then receive the invoices from our suppliers later on.
Very often, there are differences between the PO and Invoices and as per SAP standard configuration, any price differences between PO and invoice are booked straight into cost of sales while quantity differences are kept on balance sheet level. However, we would like to be able to treat the price and quantity differences the same way (i.e. on balance sheet level and so not directly in Cost of Goods Sold).
Do you know if there is a way to do so?
Also, we would like to be able to distinguish the different type of errors that resulted into differences between the PO and invoice, and create different type of errors in order later to make different reports and analyses the causes. Can we do that with the SAP MM and FI/CO functions? How?
Thank you in advance,
Regards,
Vic
Proceed with posting Invoice, System blocks the Invoice. You need to manually remove the block for further processing.
Similar Messages
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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,
GeorgeHi 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. -
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,
PradeepHello,
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 -
Hi,
We will use SAP consignment solution for vendor consignment, SAP using MRKO to sette the consignment stock, which not allow to change posting date and price difference.
Do you have experience for MRKOfor:
1. Change posting date
2. Change price
What developemnt need to be made?
ThanksHello!
For Material Movement with price difference, i find that most of the transactions posted in reply to this thread do not allow us to enter the amount externally.
You can use movement type 521 for posting a movement with price difference, by first issuing the material to the cost center and then receiving it by T. Code MIGO ->Goods Reciept -> Others and movement type 521.
If you find this helpful, please reward me with points!
Regards
Kaashif M -
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,
AartHi 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 -
Issue within Purchase Credit Account & Price Difference Account
Dear All,
I just wanted to know when this Purchase Credit Account and Price Difference Accounts within the Accounting Tab in Item Group or Within the Accounting Tab within Warehouse are Posted within the Transaction.
Kindly someone explain me with a proper example.
Regards
HPHello,
Price Difference Account :-
When we are using with Standard(Valuation Method) in Inventory Data Tab.
Suppose we have put cost 100 rupee for RM001 (Raw Materials) but if we make document for 120 then it will affect with difference amount it may be increase or dcrease.
Purchase Credit Account :-
when a credit transaction for purchasing is created, for example, an A/P credit memo
Suppose if we have made Purchase Invoice (A/P invoice ) and after we make Credit note then this account will be affect
Thanks
Manvendra SIngh Niranjan -
Price difference account - cancellation of invoice document.
I was doing the MIRO for the delivery cost for a import PO.
As i made a mistake in the entry , i cancelled the doc using MIR8
The document generated is for the reference.
How to knock out this PRD account's value
PK Account Account short text Assignment Tx Amount
21 17050057 Indian Customs - EDI V0 707509
96 26389000 Unappl cstm-CVD 20110321 V0 -144913.5
96 40408808 Price Difference-Oth V0 -142340.5
96 26389000 Unappl cstm-CVD 20110321 V0 -120621
96 40408808 Price Difference-Oth V0 -6635
96 26389000 Unappl cstm-CVD 20110321 V0 -272277.5
96 40408808 Price Difference-Oth V0 -14976.5
96 26389000 Unappl cstm-CVD 20110321 V0 -5445.5
96 40408808 Price Difference-Oth V0 -299.5
Any suggestionsHi Mahendar,
Could you just update what is the message it is giving when you try to save the new invoice. (is it saying problem in accounting interface).
if not goto VF02 and release the billing document to accounting. Then let us know what is the message it is updating. based on the same we can analyse. or in the same VF02 look for the accounting message.
Best Regards
SRI -
Issue Price Difference Acct. in JE of goods return
Dear all,
There is issue in price difference account(Defined as Material Purchase Gain A/c in warehouse)
in good return journal entry,
Eloborating problem : User booking subcontracting grpo for qty 1470.024 with price also for 1470.024,
JE for GRPO is Sub Contracting Charges A/c Dr to Sub Contracting Charges Clearing A/c Cr.
ie.,
Sub Contracting Charges a/c Dr -11,92,189.46
Sub Contracting Charges Clearing A/c Cr -11,92,189.46
Now they partially do good return for qty 811 with price 1470.024,
JE for Goods return is
Material Purchase Gains A/c Dr -11,78,900.46
Sub Contracting Charges a/c Dr -13,289
Sub Contracting Charges Clearing A/c Cr -11,92,189.46
Actually sub contracting charges a/c should have been debited to 11,92,189.46,
Why it is hitting Material purchase gains a/c ?
Pl clarify it.
Edited by: Jeyakanthan A on May 21, 2009 3:26 PMHai!
As per my understanding,
Stock Acc always in Asset Draw, Price Diff Acc in Expense Draw.
For Example..
1.I am purchasing a item of 10 qty each 1 rupee through GRPO.
2.It will post a JE like stock acc INR 10 Debit and GRNI Acc 10 Credit.
3.After that i have transfered my 5 qty to some other warehouse.
4.I am booking a AP invoice with that GRPO as base, now i have changed my price to 2 rupee.
5.It will post a JE like stock acc INR 5(51 which like in warehouse) debit, GRNI Acc INR 10 debit, price Diff Acc INR 5 Debit (51 go as expence) and Vendor INR 20 Credit.
Regards,
Thanga Raj.K -
Price difference account settlement process at period end
Hi
Is there any procedure to settle the price difffrence account (P&L Account) at the month end/year end in FI.( for the material price difference araise on purchases, subcontracting etc)
How to settle, pls provide the steps?
regards,
maalikHi Malik,
Let me try to answer and get full point from you.
As you are aware, the purchase price differnece happens due to the invoice price change and the stock gets issued to the production. Thereby, the produciton under charged.
In Sap, the transaction key PRD without account modifier, takes care of this accounting entry. There is no necessity to settle in year end or month end.
I suggest you to catch these expenses in Purchase Department cost center as overhead and this purchase department cost gets included in General Overhead which will be charged either through Activity pricing or Cost sheet surcharge method.
Trust it will hep you or otherwise revert!
Cheers, -
PRD-Auto Post price differences to different price difference accounts
Dear all,
As I know, in Account Automatic Posting, the transaction key PRD is for Cost price Difference.
If I want to post price differences to different price difference accounts in the case of goods receipts for different cost in purchase orders, How can I configure it?
Example, in PO, there is 2 costs: Freight (F) and Insurance(I) are key in as Condition Type.
I would like to post price difference from F to account XXX, and price difference from I to account YYY.
Can I configure like this?
Thank you very much for your support!
Cao HuyHello,
What is price difference.
Price differences arise for materials valuated at standard price in the case of all movements and invoices with a value that differs from the standard price. Examples: goods receipts against purchase orders (if the PO price differs from the standard pricedardpreis), goods issues in respect of which an external amount is entered, invoices (if the invoice price differs from the PO price and the standard price).
Price difference in genereal will not trigger for the materials with price control V ( Moving average price) but however
Price differences can also arise in the case of materials with moving average price if there is not enough stock to cover the invoiced quantity. In the case of goods movements in the negative range, the moving average price is not changed. Instead, any price differences arising are posted to a price difference account
For you example, you have you are having PO with Freight (F) and Insurance(I), these are called pallned delivery costs, not Price difference,
so create two different condition type for Freight and insurance and assign two different G/L accounts for these condition types in account determination.
While posting system will hit perticular G/L acconut.
Regards
Mahesh Naik -
"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. -
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 ArunachalamHi
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 -
Price Difference Account being hit while making AP credit Memo
Hello Experts,
Price Difference Account is being hit while creating AP Credit Memo. I am creating an independent AP Credit Memo (i.e. without any base document). After posting A/P Credit Memo when I look at the Journal Entry it shows 99.43% of amount goes to Price Difference Account and the rest 0.57% goes to Stock account.
Help required please.
Thanks & Regards,
Edited by: Shahzad Nazir on Jan 19, 2011 5:54 PMHi Nazir,
This entry may have resulted because once you created the GRPO say for item A, the stock would have been consumed in production. And once you created Invoice and after that when you created credit memo, the system could not find the stock so it posted the difference in price difference account. Please run inventory posting list of the items in grpo to check the same.
Thanks,
Joseph -
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
YSRHi 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 -
Dear All,
I have one query regarding purchase offsetting account EKG.
I created PO with frieght value and the material master is maintained with standard price.When I do GR it will hit the following accounts.
Post key Account Short desc amount in local currency
89 11430000 Inventory(BSX) 30117
95 12105000 GR/IR clearing(WRX) 32400
85 14804000 Price difference(PRD) 2898
40 14800040 Purchase good for resale (EIN) 30117
50 14800041 Purchase good resale clearing(EKG) 30733
50 12133000 Prov inbound frieght(FR1) 615
40 14800040 Purchase goods for resale(FRE) 615
Now my issue is I dont want to post frieght value to purcahse good resale clearing account(EKG) it shopuld be 30117 insted of 30733 and the same amount should get redused in WRX it should be 31785 instaed of 32400.
Please tell me how I can rectify this error.
Thanks in Advance,
BabuHi
If you deactivate the purchase account management then the accounts trigerred are
89 11430000 Inventory(BSX) 30117
95 12105000 GR/IR clearing(WRX) 32400
85 14804000 Price difference(PRD) 2898
50 12133000 Prov inbound frieght(FR1) 615
Is this Right.
As you have activated the Purcahse account managment they are trigerring in this ways
89 11430000 Inventory(BSX) 30117
95 12105000 GR/IR clearing(WRX) 32400
85 14804000 Price difference(PRD) 2898
50 12133000 Prov inbound frieght(FR1) 615
40 14800040 Purchase good for resale (EIN) 30117
50 14800041 Purchase good resale clearing(EKG) 30733
40 14800040 Purchase goods for resale(FRE) 615
I have just rearranged the lines, to show you that the sytem is triggering the accounts correctly and this is the way it should be rather than your calculations. I dont know how you have to come to that calculations. But WRX will alwayts trigger the amount what you have on the PO.
Thanks & regards
Kishore
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