Posting Taxes to Material cost - When price control is S - Standard Price

Hi Experts,
i have a material which is maintained with price control S. the material is having an info record with tax code I1 (5%), conditon type JP3E. when i am doing GR and IR, the tax amount is getting posted to a different G/L account. But not adding to material cost. Is it possible to add this tax amount to material cost, when price control is S.
Thanks & Regards,
Ravi

Hi Poorna,
Check transaction event key,
if it is std key 'NVV' it shold post to material cost.
or check in OBCN ur transaction key showing posting indicatpor '3' Distribute to relevant expense/revenue items.
Hope this will solve your problem.
Thanks and regards
Gitesh

Similar Messages

Change price control indicator from standard price to moving avg price.

Hi All,
There is a material which has a negative stock for the previous period and the previous period is already closed.
When i want to change the price control indicator from S to V for that material in the current period, it shows an error that "negative stock is there, unable to change price indicator".
Kindly help me to solve this issue.
Thanks,
AK

the price control indicator can be changed from standard price to moving avg price at any time .......with some restrictions.
And one of these restriction is the one you see.
You must not have negative stock.
Hence you have to make the negative stock zero
Since your negative stock is in the previous period, you either have to allow posting into previous periods (trx MMRV , of course Finance has to allow this as well) first. Then you can post e.g. a 202 movement with previous period date which has a quantity that equals your negative quantity. then you change your price control, then you do a 201 movement (again with previous period date), finally you can restrict posting into previous periods again in MMRV.
or you just wait a few days, then with the month end closure your curent period becomes previous period and hopefully you will not have negative stocks again. then you can change the price control without any problem (I usually take care that moving average and standard price are equal befor I change the price control)

Check material cost when post goods issue

Hi,
When i click the post goods issue in VL02N, I would like to check if the cost of mateial is equal to zero. If it is zero, I would like to stop the transaction with a error message.
But in the user exit, I cannot find which field provide the material cost. Can any one help me?
Many Thanks
Jean

Dear Jean,
Good morning and greetings,
In the movement type config make the accounting as mandatory and would surely meet your requirement. Maintain that in the transaction code OMJJ for the Accounting Control to Movement Type as + which is required entry. The system would throw an error if no accounting entry is generated.
Hope this meets your requirement
Please reward points if found useful.
Thanking you
With kindest regards
Ramesh Padmanabhan

Approval with UDF for blank price and lower than standard price

Dear all experts,
would like to know if it is possible for the following 2 events trigger at the same time?
background:
1. a UDF - Standard price retrieve from price list
2. a UDF - blank approval (with selection Yes and No, default is No, it is document level UDF)
3. a UDF - unit price lower than standard price (with selection Yes and No, default is No, it is document level UDF)
Approval event would like to have
1. If the field - Unit Price is blank -> user need to set the UDF "blank approval " to Yes, so can add the document
2. If the field - Unit Price is lower than the field - Standard Price -> user need to set the UDF "unit price lower than standard price to" Yes, so can add the document
i tired the following, but only one of them work when i press the button Add .....
Please kindly help on this.....
Many thanks!!
USE [ANJ_QAS]
GO
/****** Object: StoredProcedure [dbo].[SBO_SP_TransactionNotification] Script Date: 03/07/2011 00:44:31 ******/
SET ANSI_NULLS ON
GO
SET QUOTED_IDENTIFIER ON
GO
ALTER proc [dbo].[SBO_SP_TransactionNotification]
@object_type nvarchar(25), -- SBO Object Type
@transaction_type nchar(1), -- [A]dd, pdate, [D]elete, [C]ancel, C[L]ose
@num_of_cols_in_key int,
@list_of_key_cols_tab_del nvarchar(255),
@list_of_cols_val_tab_del nvarchar(255)
AS
begin
-- Return values
declare @error int -- Result (0 for no error)
declare @error_message nvarchar (200) -- Error string to be displayed
select @error = 0
select @error_message = N'Ok'
-- ADD YOUR CODE HERE
-- 1. SO with blank price then trigger approval
If @object_type = '17' AND @transaction_type = 'A'
BEGIN
 SET @error_message =
 (SELECT TOP 1 ItemCode + ' (' + CAST(LineNum AS NVARCHAR(5)) + ')' +
 CASE WHEN Price = 0
 THEN ' Price is blank. Please change UDF - Null Price Approval to "Yes"'
 ELSE ''
 END
 FROM RDR1 T0
 WHERE DocEntry = @list_of_cols_val_tab_del
 AND 1 = (CASE WHEN (Price * (100 - ISNULL(DiscPrcnt,0)) / 100) = 0 THEN 1
 ELSE 0 END)
 AND EXISTS (SELECT 1
 FROM ORDR S0
 WHERE S0.DocEntry = T0.DocEntry AND ISNULL(S0.U_NullPrice,'N') = 'N') )
 IF ISNULL(@error_message,'') <> ''
 BEGIN
 SET @error = '-10001'
 END
END
-- 2. field price after discount < field rock bottom price for SO, then trigger approval
If @object_type = '17' AND @transaction_type = 'A'
BEGIN
 SET @error_message =
 (SELECT TOP 1 ItemCode + ' (' + CAST(LineNum AS NVARCHAR(5)) + ')' +
 CASE WHEN ISNULL(Price,0) < ISNULL(U_rockprice,0)
 THEN ' Price:' + CAST(ISNULL(Price,0) AS NVARCHAR(30)) + ' Lower Than Rock Bottom Price: ' + CAST(ISNULL(U_rockprice,0) AS NVARCHAR(30)) + ' Please change UDF - RB Approval to "Yes"'
 ELSE ''
 END
 FROM RDR1 T0
 WHERE DocEntry = @list_of_cols_val_tab_del
 AND 1 = (CASE WHEN ISNULL(Price,0) * (100 - ISNULL(DiscPrcnt,0)) / 100 < ISNULL(U_rockprice,0) THEN 1
 ELSE 0 END)
 AND EXISTS (SELECT 1
 FROM ORDR S0
 WHERE S0.DocEntry = T0.DocEntry AND ISNULL(S0.U_RBApproval,'No') = 'No') )
 IF ISNULL(@error_message,'') <> ''
 BEGIN
 SET @error = '-10001'
 END
END
-- Select the return values
select @error, @error_message
end
Edited by: tac wong on Mar 14, 2011 6:36 PM

Hi Sachin,
Please create a separate thread for question 2.
With regard to point 1, there is a good description in the SAP help :
http://help.sap.com/saphelp_srm2007/helpdata/en/74/344c430fab4d0bbc30996d56cc293a/frameset.htm
Functions -> Approval Process Frameowrk -> Approval Workflow ->
Approval with Completion
and
Approval
Kind regards,
Siobhan

Moving average price as price control in material master: Erroneous entries

Dear All,
Recently we did a price control change from standard price to moving average price for one of our clients and scenario testing was done. We came across the following issue at the IR point and this error occur time to time ( not for all POs )Following steps were followed
Scenario
1. Create a PO for 1000 Kg of material A @ 1USD
2.GR the purchase order- at this point correct values are passed to stock account
3.consumed 250 Kg from the above material and from the same batch- correct values are passed to the accounts correctly
4.invoice verification is done for the above PO with a price variance of 100 USD. The error occur at this time ( some times )
Correct entry:
Dr GR/IR account 1000
Dr Stock account 75 (Price variance is charged proportionately charge to the balance stock)
Dr price variance 25 (Price variance is charged proportionately on the consumed stock)
Cr Vendor 1100
But sometimes the value does not pass accurately for the same PO. Accounting entries are as follows.
( this is same scenario with new purchase order with different master records )
Dr GR/IR account 1000
Dr Stock account 100 (Total price variance is charged to the stock account and its incorrect this should be only 75 as explain above )
Cr Vendor 1100
This error occurs sometimes even though the vendor master record and purchase orders are sand same as the time of pass correct entries . All these time GR based invoice verification tick has activated in PO as well as vendor master .
Appreciate your advice.
Tks
Sandagomi
Edited by: Sandagomi Ranasinghe on May 9, 2010 9:25 AM

Thank you for the information. But this is not the system behavior , system proportionately add the price variance to the stock qty which is remaining in the stock also it proportionately charge the price variance to the price variance account which is consumed before the invoice verification.But time to time it passes the incorrect entries.
eg , Create a PO for 100KG @ 1USD
       GR                     100KG
       Consumed           25
      IR , here we IR at higher value than the PO price
     PO value is USD 100
    IR    value    USD 100 + 12 = 112
Correct IR entry : Vendor              CR    112
                             GR/IR                 Dr    100
                             Stock                 DR      8 ( 75% of the stk is reaming in stk so relevant variance is USD 8 )
                             Price variance   DR      4 ( 25% of the consumed , so relevant variance is USD 4 )
And this is accurate with accounting principles and standards .
Actually system correctly calculate the above entries . but some times it pass the incorrect entry , this is my issue.
In the erroneous entry it does not segregate the price variance , If we consider the same scenario as above at the time of erroneous entry the system pass entries as below:
                            Vendor              CR    112
                             GR/IR                 Dr    100
                             Stock                 DR     12 ( add 100% which is incorrect )
This is incorrect .

Standard price control

HI
i want to know
Standard price control updates
A)standard price
b)moving price
c)both
which is correct ?
Prashant

Hi Prashant
Generally all raw materials (ROH), spare parts (ERSA), traded goods (HAWA) etc. are assigned as moving average price (MAP) because of the accounting practice of accurately valuating the inventory of such materials. These materials are subject to the purchase price fluctuations on a regular basis.
Company generally use moving average on purchased materials with small cost fluctuations. It is most appropriate when the item is easily obtainable. The impact on margins are minimized which reduces the need for variance analysis. Furthermore, the administrative effort is low as there are no cost estimates to maintain. The cost reflects variances, which are closer to actual costs.
The semi-finished goods (HALB) and finished products (FERT) are valuated with standard price because of the product costing angle.
SAP recommends that standard price to be used for FERT and HALB.
How SAP calcualte the moving average price
Goods Receipt for Purchase Order
Balance on hand quantity + Goods Receipts quantity
Balance on hand value + Goods Receipts value
New Moving Average Price = Total Value / Total Quantity
Regarding Std price -
Std Price is maintained in accounting view. System doesn't post GR based on purchase order price. It posts GR taking into consideration the STd price from material master.
If Std price is 100 and PO price is 110
System will post the debit inventory account with 100 and post 10 to the price diffence account.
Regards
Rajesh
Do reward if useful....

Price control for MIGO

Dear experts,
I need to know what is the settings required for "When doing GR, price in MIGO should be from the PIR and not from standard price of the material".
Please advice

Hi,
Material - Price control = S and standard price = USD 30
PIR - Has a condition record valid for Feb-2011 and price = USD 25
PO created and price in PO = same as that of PIR = USD 25 (this is fine)
PIR price control = 5 (GR date)
MIGO - completed
In ME23N or MIGO, when I display GR document, it shows the price was picked up from Material master and not from PIR
MIRO- Price = PIR price (no issues here)
All I need is to know whether we can have MIGO alos pick up same price from PIR condition record which is valid for the GR date?
Best Regards,
Shashidhar

Price Control for FG & SFG

Hi All,
Is it mandatory that for Price FG & SFG, one should maintain Price Control as "S" - standard price in the Accounting view of material master?
Regards,
Manish

Hi
It is mandatory to maintain the Price control in Material master accouting view 1 and for In house produced material it should be S standard price as per the definition of standard price
A constant price at which a material is valuated without taking goods movements and invoices into account.
For incoming material or raw material it should be V Moving average
A price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material.
The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.
Hope it is clear to you
Regards
Anupam Sharma

Standard price as condtion recod price.

hi all,
my client is requiring for some products standard price, which maintained in the material master accounting-1 needs to display inthe sales order PR00. For this how to configure.
thanks in advance.
regards
sunil.

Hi Sunil,
Simply remove PR00 and it will work fine if you always use VPRS as your pricing base inside the pricing procedure.
VPRS will reads both prices based on the price control in the material master.
Price control S for standard price.
Price control V for moving average price.
It is this simple if you do not have any other "Prices" in the price procedure.
However, if you are using one pricing procedure where for some items you price using VPRS and some others using PR00, then you should use requirement routines to enable the correct price condition type at the right time.
The second method involves more work as you need to write a formula (VOFM) to get that information.
This is how it goes :-
1. Set VPRS to be the first step in the pricing procedure and to be subtotal B (as standard).
2. Set PR00 with alt. calc. type formula, which sets the value of PR00 to be equal to the subtotal B.
The routine (created with transaction VOFM) is:
RV64A901
FORM FRM_KONDI_WERT_600.
XKWERT = KOMP-WAVWR.
ENDFORM.
The pricing procedure than looks like that:
Step 1 VPRS statistical, subtotal B, reqt 4
Step 2 PR00 Altcty 600
Reward points psl.
Regards,
Govind.

Production costs for material with price control V

Dear all,
Can anyone pls tell me, how will the costing occur for a material produced in-house and having price control 'V' ? I am not able to see the target costs.
Also kindly tell me the settings to be done in CO, like target cost version, valuation variant, costing variant, etc.
Thank you,
Shrenik

Rather than giving my own versions I have compiled here SAP inputs. Pl let me know if you require any clarifications:
Costing variant has the following components:
Define Costing Types
Define Valuation Variants
Define Date Control
Define Quantity Structure Control
Define Transfer Strategy
Define Reference Variants
Costing type:
In the costing type, you define the purpose of a material cost estimate by specifying, for example, which field in the material master record the costing results can be transferred to:
Update Cost Estimate
Standard price Standard cost estimate (01)
Tax-based price Inventory cost estimate
Commercial price Inventory cost estimate
Price other than std price Modified standard cost estimate or
current cost estimate
No update Any cost estimate
Define Valuation Variants:
Define Valuation Variants
Here you create a valuation variant containing the parameters required for valuation of a cost estimate.
You also specify which costing sheet should be used to calculate overhead.
Valuation Strategies
Material valuation
Here you define the sequence in which the system searches for prices from the accounting view or costing view of the material master record to valuate materials. You can also access prices from purchasing info records and condition types.
For material cost estimates, you also specify whether additive costs can be added to the selected price.
With configurable/configured material components and with procurement alternatives, the sequence defined here is ignored if the strategy "price from purchasing info record" was selected, in which case that strategy is always executed first. For more information, refer to the SAP Library in the component Product Cost Planning under Raw Material Costing or Mixed Costing.
Activity Types / Processes
Here you define the sequence in which the system searches for prices in activity type planning or actual activity price calculation in Cost Center Accounting or Activity-Based Costing to valuate the utilized activity types and business processes.
You also specify which plan/actual version is used.
Subcontracting
Here you define the sequence in which the system searches for prices in the purchasing info record. In purchasing, quota arrangements are used to create a mixed price for materials that are manufactured with external vendors with parts provided by the customer. You can specify whether the quota of the individual vendors that are entered in the source list for the material to be processed should be determined through the planned quota arrangement or the actual quota arrangement.
External processing
Here you define the sequence in which the system searches for prices in the purchasing info record or routing operation for valuation of the external activities.
Strategy Sequence
You define the individual valuation methods for the valuation variant as strategy sequences. For the valuation of the material components you define a strategy sequence that reads the fields of the material master record in a particular sequence such as:
1. Planned price 1
2. Standard price
3. Moving price
The first price that is not zero is used to valuate the material component.
Target versions:
Target cost versions are used in the following ways:
In variance calculation:
To control which variance (total variance, production variances or planning variance) is calculated
To valuate unplanned scrap( scrap variance)
Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap.
When you are using a cost object hierarchy with active distribution, you use the target cost version to control which cost estimate the system uses to calculate the target costs, which are used as the basis for determining equivalences for actual cost distribution.
The actual costs collected at the level of the hierarchy are distributed across the orders in accordance with these equivalences. This distribution is proportional to the target costs for the cost element under which the actual costs are written. Actual costs for material costs are distributed in proportion to the target costs for the origin group, such as for the material, if you have entered an origin group in the costing view of the material master record and have set the indicator Material origin, for example.
If no target costs were calculated under this cost element, enter a cost element group in the target cost version. The actual costs are distributed in proportion to the target costs for this cost element group. This cost element group should be complete. If costs were updated under a cost element that is not in this cost element group, no distribution is possible.
You can calculate equivalences on the basis of SAP standard target cost versions 0, 1 and 3.
The standard system supplies the following target cost versions:
Target cost version 0 ( total variance)
The amount of the total variance generates a posting in Financial Accounting during settlement.
For this version, select actual costs as the control costs and standard cost estimate as the target costs.
Target cost version 1 ( production variance)
For this version you choose actual costs as the control costs and planned costs as the target costs.
Target cost version 2( planning variance)
With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs.
For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.
Target cost version 3 (production variance of the period)
You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.
The base quantity for variance calculation is the yield.
For this version, you choose the actual costs as the control costs and the alternative material cost estimate as the target costs. To determine the alternative material cost estimate, enter a costing variant and choose a costing version.
The target cost version specifies which data is to be compared. The target cost version also specifies which variance variant is used and therefore which variance catagories are calculated. You can define a different target cost version for each controlling area

Cost Run for Raw Material taking Standard Price instead of Moving Price

Hi all,
We ran a material costimate with normal components FG>SFG>RM. The RM price Control is set to
V (Moving Average Price) and for SFG & FG it is S(Std. Price). After we run CK11N, the price for
RM in Material Master changes as per Moving Price. We found that the RM Component is
costed based on Standard Price and not on the previous cost run Moving Average Price. After
certain period, if we again do cost run, the sytem is again picking up the standard price for costing
not the revised Moving Price. We have checked the Valuation Variant in the Costing Variant, where the strategy given is 1. Moving Average Price 2. Standard Price. We also tried to change the
sequence as 1. Price as per Purchase Info Record 2. Moving Average Price and 3. Standard Price and
also 1. Standard Price and 2. Moving Average Price. Our requirement is when we run the cost estimate the raw material has to pick the price of previous moving price stored in the Material Master. Kindly tell us where to set the indicator.
Thanks,
Sadashivan

Hi Srikanth,
Problem solved. I checked the sequence in Valuation Variant and modified in Valuation Variant for Plant which I have not set previously and now the system is working correctly.
Thanks,
Sadashivan

Changing price control indicator and posting difference to sperate account

Dear Guru's
Need your advice on how to handle the following scenario. Company wants to change the Price ontrol indicator in a material from V(moving price average) to S(Standard cost).However there is stock in the inventory for this item.Additionally they also want to change the price of the item with the difference posted to a seperate balence sheet account.

Hello
While changing the price control, the moving average price becomes the standard price, which is then used for valuation.
You change the type of price control by overwriting the price control indicator in the material master record with the new indicator.
Changing the type of price control for a material does not change the value of the material stock, since in both cases the current price becomes the new price.
For changing the material price, use revaluation MR21.
At the time of price change, for a material subject to standard price control, the material debit or credit is posted to a price difference account. The offsetting entry is made to an income or expense account. Consequently, a material debit or credit for a material subject to standard price control does not lead to a revaluation.
Regards

CK40N - Update for material with price control 'V'

i Experts,
When im running standard cost estimate in CK40N, say for material types semi finished. The components that is raw materials of the SFG is also updated with the price, meaning for a raw material with price control 'V' has a price of 10, after
releasing the cost estimate for the SFG, when i look into the material master of raw material, the price of 10 is also updated
in the standard price.
I am not sure why this is happening, i believe it should not happen. Because in the valuation variant, if i give the strategy as standard price, this price is easily picked up. And more over with price control 'V', i can change the standard price. Can anybody throw some light on this.
Best regards
gj

Hi Rakesh,
Thanks for the information. But i do agree even during release there is no impact on the inventory. But in my cost variant, say in PPC1, if i give the strategy say 1. standard price 2. moving average price, during cost estimate run, its going to take the standard price for the material irrespective of the price derived automatically for moving average price. For eg in our case for raw material with price control 'V' after sce run if the standard price is 10 and moving average price is 14, as per strategy of PPC1 above its going to take 10 and not 14.
Is there any other way to avoid this. Please correct me if i had went wrong somewhere.
Best regards
gj

Condition type to be loaded on Material cost after Taxes but shouldn't change Tax base Amount.

Customer requirement is that they want to deduct some amount after the Taxes (after BASB) &t load this amount value after taxes on Material cost (hence accrual KEY can't be used). but with the addition of this new condition type (for deduction) it shouldn't change the base amount for Tax condition type (BASB).
Basic Problem : new condition type value to be load on material (after taxes). but this condition value shouldn't change the Net price of PO(amount in BASB condition of Tax) so that base amount (BASB) of Tax procedure remain unchanged.
(Since it is to be loaded on material hence i cant use account key definitely. Also this cost to be loaded on material after taxes)
Ex -             PBXX =     100 base price
                 Freight =       20
   Tax base amnt =     120
               Tax (5%)=          6
                      Total =    126
     Other Charges=      10 (this 10 Rs amount in this condition type required to be loaded on material cost, at the same time this condition value shouldn't change the base amount for the Tax (BASB)
Please suggest (purpose is to load the deduction on material cost after Taxes & same time it shouldn't change the the amount after Tax base calculation)

Hi,
   Your condition type is without acrual flag in M/06. No acrual key is maintained in the MM pricing procedure.
   To achieve your requirement, maintain subtotal 6 against the condition type in your MM pricing procedure in M/08.
   Maintain the base type calc procedure as 362 against your BASB condition type in tax procedure. Keep the field blank for the tax condition type (VAT or CST / ED etc)
   Test the scenario again with a new PO. System will show the condition value in net amount field in PO, but the same wont be copied to BASB in tax procedure. Check the taxes pop up. Check the same and revert back.
Note: Similar requirement (not exact) for acrual conditions are mentioned in my doc: Tax Calculation on Freight - Different Scenarios You may refer it if required.
Regards,
AKPT

Price control in material master.

Dear all,
How can i change the Price control key(V to S) in material master.
and what are the implication after change the price control.
Please suggest.
Regards,
Vishal Garg

Hello
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.
Changing the Type of Price Control
Under certain conditions, you can change the type of price control:
From standard price to moving average price
You can make this change at any time. The moving average price (which until now has been updated for informational purposes only) replaces the standard price and is used for valuation from now on.
From moving average price to standard price
You cannot make this change in the following two cases:
If the material master record is set up as a valuation header record for a material subject to split valuation
If the standard price comes from costing and is not equal to the moving average price
If the change is possible, the moving average price becomes the standard price, which is then used for valuation.
You change the type of price control by overwriting the price control indicator in the material master record with the new indicator.
Changing the type of price control for a material does not change the value of the material stock, since in both cases the current price becomes the new price.
An example is given below:
Standard price to Moving average price
Material A
Price control: S
Moving average Price: 8
Standard Price: 10
Total Stock: 100
Total Stock value: 1000
Now we change the material price control to 'V'. Then
Material A
Price control: M
Moving average price:10
Standard price: 10
Total Stock: 100
Total Stock value: 1000
Moving average to standard price
Material B
Price control: V
Moving average Price: 8
Standard Price: 0
Total Stock: 100
Total Stock value: 800
Now we change the material price control to 'S'. Then
Material B
Price control: S
Moving average price:8
Standard price: 8
Total Stock: 100
Total Stock value: 800
Hope this will clear your doubts.

Posting Taxes to Material cost - When price control is S - Standard Price

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