Price Difference due to rate of exchange

Hello,
I am looking for a customizing step to regulate price differences due to rate of exchange from PO to the Invoice.
I need to customize in order to add this difference to material moving average price, instead of using PRD.
Could you please help me to regulate this price difference procedure?
Thanks in advance,
Best Regards,
Irem Soydan

Hi Irem Soydan,
You need to customize in OBYC settings, Assign a GL account to Transaction event key KDG(MM Exchange Rate Differences).
If any exchange rate differences occur while doing MM transactions, The differences are posted to the account maintained in KDG
Best Regards,
Uday

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Price difference due to changed POD qty how to account for this ?

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I am having delivering goods after activating POD at item level and customer master. My delivery document the qty is 10 tons , Due to pilferage transportation loss etc the qty is reduced to 9.5 tons. After confirming POD , i am billing for 9.5 tons. The difference of 0.5 ton how to account. I am also maintianing the VPRS condition in my pricing procedure. How does it affect my costing ?how to do the price diference posting and where?

Check the following SDN thread:
- Re: Accounting Entry for Loss in Transit.
Regards
JP

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

How to resolve price difference in case of Returning material through STO

We are receiving material from our plant A to plant B. Material is manufactured in plant A and Standard price (3 S) is maintained for this material. In plant B, 2 V is maintained for this material and no excise credit is taken here. Now when i am returning unsuitable material back to plant A, there is a price difference, due to which plant A is unable to take the credit.
Is there is any process so that same material cost is picked in sto when we are returning material to plant A
Edited by: Sunil Kalia on Sep 15, 2010 9:19 AM
Edited by: Sunil Kalia on Sep 15, 2010 9:20 AM

In manufacturing plant Sales price is maintained as Standard price in Z-table , which is material cost + manufacturing cost. On this cost material is inward to plant B. But when material is returned back, MAP is assigned in STO, which is material Cost. The issue is due to different valuation areas at plant level in the same company.
Is there is some process to link the original STO with Return STO as discount issue does not match the prices.
Regards,
Sunil

Spot rate and Exchange rate

Dear SDN's
I want to know,
What is spot rate in FI?
What is difference between spot rate and exchange rate?
where we can find this spot rate in R/3?
i am doing report for FI where the client want this spot rate? where the client is not maintaining any practice in R/3 for this spot rate. i would be very grateful for your valuable suggestions.
Good day,
thanks and regards
Arun

Hi
A forward exchange transaction can be regarded as a future spot exchange transaction, because it comprises the future purchase or sales of foreign exchange.
Check the link for more info
http://help.sap.com/saphelp_nw04/helpdata/en/3f/f2fb76a87711d198b00000e8a5999a/frameset.htm
You use spot exchange transactions to buy and sell internationally traded currencies against other currencies. These orders have very short expiry terms. It is a binding agreement for the immediate exchange of foreign exchange. As a rule, the foreign exchange is credited or delivered two days after conclusion of the business transaction.
Also Check the link
http://help.sap.com/saphelp_ides/helpdata/en/8f/21b3c08e8011d2bc9a0060087d1bfc/frameset.htm
Regards
Shilpa

Advise how to set GL account for GR/IR difference due to different exchange

Hi Experts,
You could find that price in GR and IR is the same, but the exchange rate in IR(32.395) is differenct from exchange rate in GR (32.37000).
There are some line items of Price differences in inventories from procurement (GL 490400) in the accounting document of GR, but they are derivative from differenct exchange rate rather than price differences.
So, we would like to change the configuration to let the exchange rate differences posted to GL account of income or expense from exchange rate differences (GL 396000/796000), other differences posted price differences in inventories from procurement (GL 490400).
Kindly advise.
Thanks.
===============================================

hi
Differences due to exchange rate rounding, Materials Management (KDR)
An exchange rate rounding difference can arise in the case of an invoice made out in a foreign currency. If a difference arises when the posting lines are translated into local currency (as a result of rounding), the system automatically generates a posting line for this rounding difference.
Exchange rate differences from lower levels (KDV)
In multi-level periodic settlement in the material ledger, some of the exchange rate differences that have been posted during the period in respect of the raw materials and semi-finished products used in the manufacture of a semi-finished or finished product are debited or credited to that semi-finished or finished product.
Exchange rate differences in the case of open items (KDM)
Exchange rate differences in the case of open items arise when an invoice relating to a purchase order is posted with a different exchange rate to that of the goods receipt and the material cannot be debited or credited due to standard price control or stock undercoverage/shortage.
now maintain all this key with your required exchange rate difference account in OBYC
Price differences (PRD)
Price differences arise for materials valuated at standard price inthe 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).
-   None     for goods and invoice receipts against purchase orders
-   PRF      for goods receipts against production orders and
         order settlement
-   PRA      for goods issues and other movements
-   PRU      for transfer postings (price differences in the case
         of external amounts)
now maintain all this key with your required price difference account in OBYC
regards
kunal

0.01 price difference local currency amount (not due to forex)

Hi All,
I have this strange system behaviour.
In foreign currency, it has no issue. But when see in local currency, it has price difference which is not due to forex.
The exchange rate used is 7.79594
ithe 4 GR lines in foreign currency
14,006.00
9,870.00
14,194.00
3,948.00
where the total foreign amount is 42,018.00
the 4 GR lines in local currency
109,189.98
76,945.96
110,655.62
30,778.38
where the total calculated by system is 327,569.94
BUT, if you calculate yourself, it should be the below where total is 327569.81.
109189.94
76945.93
110655.57
30778.37
Both amount giving the difference of 0.12. (line item of GRC cannot set off due to difference of 0.12. GR 327,569.94 and IR 327,569.82).
Now, during IR, the foreign amount is same which is 42,018.00 and exchagne rate also the same 7.79594 but the GRC amount is credited 327569.82.
But if you see in PO history in me23n, the amount at IR line is 327569.81.
When I see the document in local currency, it throws out credit of 0.01.
My question is,
1) why during GR, the amount calculated manually and system different by 0.12?
2) why during IR, the local amount with addition of 0.01, which is 327569.82 whereas in PO history in me23n, it is showing 327569.81. Why FI document figure and PO history tab IR line different by 0.01?
Thanks

Hi Calesta,
While the currencies have decimals exceeding 4places, then system would many times dismayed while converting and displaying between the local and the foreign currencies. Pls check if you have defined decimal places for the currencies as per your requirement.
Finally the concern is in the acc doc entries either in MIGO or MIRO. If the difference you are getting is affecting your accounting due to exchange rate differences etc you can configure automatic posting by TE key KDR in OBYC
Regards
Shiva

I bought the new ipad in Brea Apple store in Oct 1st. I know it is out of return date, but I have bought it only for 24 days. Can I exchange the ipad with retina or give me the $100 price difference?

I bought the new ipad in Brea Apple store in Oct 1st. I know it is only 15days to return or refund. but I have bought the new ipad only for 24 days, and now it
devalueted $100. I can't accept this fact. Therefore, can I exchange my ipad ? or give me the 100$ price difference ?
thanks BTW Do you have any Chinese customer services, I think I can contact you more convenient with Chinese.

Please be aware that you are not communicating with Apple when you post in these forums. The only people who will reply to your posts are your fellow users.
You would need to talk to the Apple Store from which you purchased the iPad. Apple's official return policy is 14 days, though it's been reported that the manager of some Apple Stores have been waiving that limit.
I doubt very much that the Apple Store will have anyone who speaks Chinese, though of course you can ask.
Regards.

GR and IR price difference.

Hello Gurus,
I am facing one issue. We have a PO created of lets say 1000 qty and the condition rate for it is 1.5. Now GR is been done of 100 qty then in the GR, the amount is local currency should be 150, but the amount is coming entirely different. It is higher than 150, say 170. Now when i am doing IR at that time 150 is coming as the value and hence there is a difference in IR and GR. I checked the currency and its all same. Also I checked the exchange rate, that is also same. Please let me know from where Amount field in GR comes. Is it calculated through Moving Average price in MM.

Amount in GR comes from standard cost in material master. Entry will be:
Inventory A/c Dr           170
To GR/IR A/c                       150 (based on condition rates)
To Price Difference A/c           20 (difference between standard price and condition rate)
At the time of invoice receipt:
GR/IR A/c Dr             150 (Original condition amount)
Price Difference A/c      10 (new price increase)
   To Vendor A/c                     160 (total vendor liability)
Please award points if useful.

Price difference in inovice(scheduling agreement)

Hello Gurus,
Can anyone please suggest me on the systems unknown behaviour given below.
We have scheduling agreement in currency GBP and Local currency EUR, when we post GR, it is getting posted perfectly i.e with proper accounting entries as Inventory account to GR IR account and proper values . But when we post the Invoice system is crediting the same GRIR amount to vendor account which is right and debiting a huge unknown figure to Price difference account and the difference between these two is getting credited to GRIR account. This is completely out of logic.
Exchange rates are perfectly ok. when we create another scheduling agreement with the same data(as old scheduling agreement) it is working fine. now I am not able to find out where the problem is, can anyone suggest on this.
Thank you,
Srinivas

Hi Srinivas,
This will happen normally when the price in MMSA difference from the current standard cost estimate in material master. The difference between these two will post to Price difference account normally.
Check what is the last costing period/year for that material. Complete the costing run for current period and post now. It solves your problem
~Thanks!
Rajesh

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 in Invoice

Hello Gurus,
Can anyone please suggest on the systems unknown behaviour given below.
We have scheduling agreement in currency GBP and Local currency EUR, when we post GR, it is getting posted perfectly to Inventory account to GR IR account. But when we post the Invoice system is crediting the same GRIR amount to vendor account which is right and debiting a huge unknown figure to Price difference account and the difference between these is getting credited to GRIR account. This is completely out of logic.
Exchange rates are perfectly ok. when we create a scheduling agreement with the same data it is working fine. now I am now able to find out where the problem is can anyone suggest on this.
Thank you,
Srinivas

Check the standard cost of the material, looks like something is terribly wrong like it is per 1 instead of per 1000 or something like that which might explain the huge posting you see to the price difference account during invoicing. I am sure it will be there in the GR accounting document too..

Such a big price difference

Hello,
Does someone know why there's such a huge difference between price in $ and price in Euro?
I checked the price of Premiere CS6 full English it cost 799$ at international store and 1,087 Euro in Italian Adobe Online Store even to make 1:1 exchange rate it's very great the difference.
Question n.2 I have another Premiere licence 5.1 which isn't listed on upgrade menu can I apply for a special offer to some address?
Thanks for helping.
Angelo

The price difference between Europe and the US/Canada is being explained by Adobe as the different support policies that apply. In Europe you have free support, in the US/Canada you have to pay for it.
Personally I think this is a crap argument, given the track record of Adobe support, but it may make sense to the marketeers. Now, I may not be the regular Adobe user, but that support argument does not apply to me, your case may be different, but given the choices, I rather buy in the US using physical delivery to a US address and have it shipped out to Europe by a friend than paying the extravagant price in Europe just to get free support, which in practice means I have to teach these support guys what they should be testing/solving.
CAUTION: Non-US credit card payments are not accepted for US delivery. You have to figure out a way to buy CS6 with a US credit card number. It really looks like discrimination and not from the internet age, but Adobe really should make a more uniform pricing policy and payment acceptance on a global scale.

Price difference after return of saled goods.

Hi gurus,
Please help me to solve one scenario.
I sale X material for Y price to my customer.But due to some problem if he returns my material.
If I want to take that material in stock again for Z price that will be less than price Y, then what should I do.
i.e.Suppose sale price-100 Rs and I want retun price should be -90 Rs.
How would I handle this price difference.
Pl help.
Regards,
rb

Hi Bruce,
Thanks for your reply.
Can this will change my material price having price control "V".
Because I don't want to change my material price.
Waiting for your reply.
Regards,
rb

GR/IR Price Difference

This is somewhat complicated to explain but let me give it a whirl.
What has happened is we have receipted an item in at 4570, then we invoiced it at 4800 (taxes and unplanned delivery costs)
For some reason the item was unreceipted a month later at the invoice price of 4800, then it was receipted back in, but it receipted back in at the PO price of 4570. How did this occur.
There were 3 line items on the PO
The 1st line item was receipted and paid no issues, the second one is the one I have issues with, and the third one was receipted and unrecipted, then the price was changed to 0.00 and receipted back in again.
When I look at the MB51 and look at the PO movements, I see the two reversals (102) however, for some reason it seems that line 2 and 3 became lines 1 and 2, because I see a 102 movement for line item 1, however this never occured on the PO.
This helps me understand how when line 2 was receipted back in it came at the 4570 price because it took the price from what was actually line 3 (never invoiced)
Hopefully this makes sense to somebody. I am trying to recreate this in a test environment so I can understand why this occured. I have not had any luck yet. If anybody has any suggestions or needs further clarifications please let me know.
Thanks for your time.

Amount in GR comes from standard cost in material master. Entry will be:
Inventory A/c Dr           170
To GR/IR A/c                       150 (based on condition rates)
To Price Difference A/c           20 (difference between standard price and condition rate)
At the time of invoice receipt:
GR/IR A/c Dr             150 (Original condition amount)
Price Difference A/c      10 (new price increase)
   To Vendor A/c                     160 (total vendor liability)
Please award points if useful.

Price Difference due to rate of exchange

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