Price Difference Account - ML force OK

We have to force ok Material ledger Job for previous period after period has been closed. For whatever reason user did not include valuation area in the material ledger and based on SAP Note 361236 we forced for that particular plant.
When we ran single level it usually post to " Finsished Goods Invent - Std" account , however in this case it posted to price difference account.
Can anyone help to understand how/why it picked different account for single level/multi level?
Will it cause any impact for subsequent periods for valuation area that is Material Legder forced ok?
which account keys do I need check for the Material ledgeger posting in automatic account assignments?
Anyhelp or insights will be greatly appreciated.
Regards,
Mohan

Hi Mohan ,
Please reveiw SAP Note 908737 - Post Closing in Material Ledger .. which will clarify your doubts and answer your query..
Account Determination is very well explained here..
All of your answers will be in the note.. For any further clarifications.. please revert back..
Regards
Sarada

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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 PM

Hi 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
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

Price Difference account when Creating Goods Return

Hello experts,
I got below case:
1) Create a GRPO
2) Created Landed Cost document
3) Create a Goods Return (realized the lot number entered on the GRPO) was incorrect.
When I create the latter document, this impacts the Price Difference account for the same amount increased on the Landed Cost document?.
The Accrual Landed Cost account it is the one that should get hit.
Any suggestions? is this how it is suppose to behave?

Hi,
Are you working with 8.8 version? If yes,
then check Note no. : 1554871 regarding the issue reported by you and confirm whether the issue is similar to the one mentioned by you here in the thread.
If not, please check Note No. : 1161695 and see if the same is the scenario.
You can update us with the version and patch if further tests needs to be done.
Kind Regards,
Jitin
SAP Business One Forum Team

Price difference account posting for return of goods using MR11

HI SAP Expert
When we are running MR11 for goods receipt transaction system is posting reversal document to price difference account instead of inventory account.
In this case relevant details are :-
Price control for Material is S .
PO QTY 190( Purchase order is of M category with sales order linked)
GR qty 190
IR qty 20
Return Qty (ACCM) using MR11 :-170
PO price :-84.74
Standard price : 81.99
GR price :-84.74
When a document is posted using MR11 for reversing goods it has posted value : 14,405.80(170*84.74) to price difference account instead of material account. What could be reason for system behaviour.
With Regards
A N

HI,
check you have material qty in system check in MMBE or MB5B on givin date
if dont have any qty system will hit PRD account its sap stander
Regards
Kailas Ugale

Query for Price difference account when item is not sold but not on stock

Hi Experts!
One of my clients accountant requires a report which will help for what to do with the balance of the price difference account.
At the and of the year there are some postings on this account, but not every item that hadnt been on stock when A/P Invoice arrived were sold. Some item were waistrel and put into a waistrel warehouse, but not sold.Some item were sent back to the supplier, but not sold.
Is it possibble to make a query for knowing where to post the balance of the price difference account? Not all should be post to the Cost of goods sold.
Thank you in advance!

Hi,
The query is possible. However, it is a complicated one. It is also need to involve detailed analysis to your transaction histories. You may start from OINM table to check.
Thanks,
Gordon

Price Difference account at the time of Order Settlement

Hi SAP Gurus
While doing Period End Activities in Controlling, Variances are getting posted to Price difference account (P&L account), similarly at the time of MIRO also, any adjusted amount of a material, is getting posted to price difference a/c if the material stock is not available.
Please help me where this Price diffrence account is assigned or mapped in sap, and how it getting affected while settling orders.
Expecting an immediate reply.
Regards
Praveen Kumar.B

Hi Ganesh
Thanks for valuable advice, but in our case when i double click PRD, there is only one account is mapped in our chart of accounts, But there is no field for Valuation class, from Account field and to account field,
only one field is there by nme Account, where in Price difference account is maintained.
I don't have the option of linking Valuation class with GL Accounts of RM & Semi Finished Materials.
How can make those fields to be shown in that Screen.
If i check for other chart of accounts, it is showing 3 fields
such as Valuation class, from account no & to account no.
but for our chart of account only one filed "account" is displayed in the screen.
Please help me out.
Thanks & Regards
B.Praveen

Price difference account in case of FIFO method

Hi Experts,
One of client has pop up a question:
According the system behaviour the Price difference account is used when the price in the base document is different than the cost of the open layer linked to that base document, this price difference will be recorded in the Price Difference account. Which means if the price of A/P Invoince differs from the price in the Good Receipt PO then the difference will be posted to the price difference account. But how will the balance of the price difference account credited or debited? Should we make a general ledger postings?
At this moment the balance of the price difference account is 40.000 EUR, the balance of stock account is 320.000 EUR. If these items are sold then the cost is 320.000 not 360.000!
So the system collects these price differences but these refers a real FIFO value , so when the item is sold then the system should calculate these price difference values into the real FIFO value to get the real cost of the item.Is it right or not?

Hi Eszter,
Indeed, the Price Difference Account is a COGS (Expense) account.
In Continuous Stock the calculated Expense (cost of goods sold) is booked when the sale is done as we know.
So when a cost is known later then the actual sale was done this also needs to be booked to an expense account, that is what happens when the Price Difference account is used.
Example:
(Purchase) GRPO Qty 10, Price $15 ($150 debited to Stock)
(Sale) AR Inv Qty 10 ($150 debited to COGS, $150 credited Stock)
Now we have 0 Qty and 0 balance on Stock account.
So now you receive the AP Invoice based on the GRPO where the price in the AP Invoice is 17. this means that you have an additional cost of $20 (Qty 10 * (17-15)).
Why is it NOT debited to stock?
As the stock account should always reflect the value of your stock you cannot debit stock (there is no stock left), so in this scenario it is booked directly as an expense (COGS) instead of going the way -> Stock -> Expense.
That makes sense, right?
Hope it helps.
Jesper

Price Difference Account and Change in Stock Account

Hi Experts,
What are the main differences between "Change in Stock Account" and "Price Difference Account" ?
Can anybody plz provide me the documents which gives sequential entries from GR to Payement involving these two Accounts?
Regds,
Bijay

Hi
Change in stock is triggered when goods are delivered to stock (Fg location) thru movement type 101 - GR for an order.
During PGI - entry posted is
COGS - Dr
FG Inventory - Cr
Just though of correcting the message posted
If the above clarifies pls assign points as a way to say thanks

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
HP

Hello,
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 Accounts

I want to Post my variances created in my Production order settlement in to The Material Inventory accounts , How i can go ahead ?
My Issue on the Production server of MTO scenario with strategy 20 with moving average price valuation . at the end of the settlement i need to post the variances in to the same Inventry accounts instead hitting the Price difference accounts
Kindly help me in this regard
Regards
R.Rajaram

Hi
If the material has moving average indicator V in MM record, then depending on the volume of Inventory in stock, the variances are accounted.
I shall explain by way of an example:
A material has a moving average price of say $45 in MM record and has a quantity of say 80 units.
If the Production Order produces say 100 units at a price of say 50 and transferred to Inventory. Now we have 180 units at a total price of $8600, thus Moving average price is 8600/180=47.77. Goods issue is say 120 units ,Balance in inventory is now 60 units . Variance on the Production order arises is say $200.
Now the quantity of stock in Inventory is less than 100 (order produced quantity) by 40 units. Hence Variance is proportionately transferred as follows:
40/100*$200=$80 alone is transferred to Inventory account, balance $120 transferred to Price difference account. This is done because if we transfer the whole $200 to Inventory account, it will arbitrarily inflate the moving average price
If the Inventory level in the above case is more than the Prodn order quantity, then the entire variance is transferred to Inventory account.
Hope this is useful
S Jayaram

Foreign Exchange difference posted to price difference account at MIGO

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

Hi,
Thanks for your replies.
We have already maitained exch.rate GL OBYC-KDM, which is successfully posted with the exch.rate diff.arising out of GR & IV at the time of IV.
I'm talking about price difference in Std. cost & GR value because of exch.rate diff.
For example, Std cost for Material A is 1000 MXN converted to $100 with exch.rate of 10. Now, GR happens with 1000 MXN converted to $200 with prevailing exch.rate of 5. Please note that std. cost and GR is the same price 1000 MXN, but USD amount is changed resulting $100 gets posted to PRICE DIFFERENCE Account, whereas we want to post it to FOREIGN Exch. diff.A/c becuase it's arising out of exch,rate difference.
Please let me know if it makes sense.
Thanks,
Nirav

MM Price Difference Account

Hi,
Can anyone tell me the treatement of MM price difference account in Controlling. According to me we need to create it as a cost element and capture to one cost center to track the price difference account and allocate it to production cost centers by way of assessment. Is it true.Please explain me in detail.

Hi Prasanth,
You can create Price Difference Account as a Cost Element and you must make a default Account Assignment in OKB9. You may need to create a Cost Center for this. So, whenever some amount gets posted to this GL, automatically same value will flow to that Cost Center and you can use any allocation method to transfer that value to different Production Cost Centers.
Pls revert back for futher explanation...
Srikanth Munnaluri

Price Difference Account and Role of Cost Center.

Hi Experts,
How we can treat the Price difference account with respect to Cost & Financial P & L account.and what is the importance of Cost center for this Price Differences. can we allocate the Price difference of Common Profit center to main Profit Center?
With Regards,
SK

Hi,
What price differences are you referring to here ? Could you explain with a small example ?
Normally customers post price differences to COPA via OKB9
regards
Waman

How to determine price difference account for 301 MT?

I know that 309 movement type is used for tranferring a material to another material . If the prices of two materials are different, price difference will go into transferring account determined by transaction key AUM.
301 movement type is used for transferring material A from plant 1000 to plant 2000. Suppose a scenerio:
plant 1000, material A, standard price 115,
plant 2000, material A, standard price 100,
so, if I use MB1B to do a transfer posting, the accounting entry must be:
Dr: stock posting account    100
     price difference account   15
   Cr: stock posting account   115
What I doubt is, in this scenerio, How to determine this price difference account in OMJJ and OBYC? It is also determined by transction key AUM like 309?
Hope you can help. Thanks.

I have checked that price difference account of 309 MT is also determined by AUM. But, from SAP documentation, AUM is described like this: "This transaction is used for transfer postings from one material to another if the complete value of the issuing material cannot be posted to the value of the receiving material. " So I think that AUM is is used for transferring one material to another material, not used for transferring a material from one plant to another plant. It is different therotically, I think. but, in practice, 301 and 309 both use AUM for price difference account.
THis is my doubt.

Price Difference Account - ML force OK

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