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

Similar Messages

Price difference from Raw Material

Hi,
I have activated material ledger, Price control for ROH V, A/c determination is 2 and for SFG & FG Price control S & A/c determination set as 3
Production having set of RM material & SFG Material,
and I have price difference from RM purchase ( GR/IR) ,
Price difference from Production order settlement so on..
i need clarification that How standard system behave when ML activate Price difference loaded to ROH , SFG and FG material.
rollup to higher material
and further i need separate GL for price difference GR/IR & Order settlement.
Kindly do the needful.
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Vinu

Hi Vinu,
Please take a look at the sap note 721360 which provides very helpful information about
MAP-controlled materials and actual costing.
In addition take a look at the sap note 81682 and 689189 which are useful too.
Regards,
Maria Luisa

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 Huy

Hello,
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

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 A/c is debiting instead of Raw Material A/c when MIGO

Hi Experts,
Please can any body help me regarding FI-MM integration.
When do the MIGO transaction as per standard - Debit is Raw Material A/c and Credit GR/IR Clearing A/c.
But in my System Debit is Price Difference A/c and Credit is GR/IR Clearing A/c is taking, because Price Difference A/c is coming from PRD transaction Key where I given Price Difference A/c. Why system is not taking Raw Material A/c from BSX transaction key.
Please help me as soon as possible.
Regards,
KBR.

Hi..
I want to add :
If you want to maintain Price Control as "S" then maintain standard price (MR21).
Then stand price will hit BSX nad diff between PO price and Stnd Price will go to PRD a/c.
kkumar

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.

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.

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

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

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.

Price Difference GL significance

Hi experts,
Please clear my doubt at the time of FG scrapping which GL a/c should get hit.
Price differnce a/c OR Loss on scrapping of FG a/c should get debited.
To FG Inventory a/c
Now if the above FG after scrapping is generated as scrap-by product to be used in production as raw material what should be the entry.
What is the significance of PRD a/c.
Regards,
Divraj

If the FG is scrapped
Dr Loss on scrapping of FG a/c
Cr FG a/c
If you are converting the FG into another form
Dr FG By product
Dr Loss on scrapping of FG a/c(If the by product value is low)
Cr FG a/c
Price difference is, when you receive debit/credit note for the goods from the vendor, if the respective goods are available then price differece posted to Inventory account, if the inventory is already consumed or sold then price difference goes to price difference account.
Rgds
Murali. N

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

Price Difference in Sub contracting

Hi all,
I have a question on price difference on sub-contracting. The issue is, there is a sub contracting PO for Rs.100 for 10 units. GR is done for 100 units. Before the IR is done, there is a change in the PO price to Rs.60. Further of the 10 units which was received, 6 units have been issued out. Now the stock in hand is only 4 units. As there is a price change, the difference in the price to the extent of the stock availability is posted to Stock account (40/10*4 = 16) and the balance of price difference (for non-availability of stock) *shoud be* posted to price difference account.
Wanted to confirm from where is the price difference account is picked up for sub contract? Whether it is the GL account given in PRD or FRL in OBYC settings.
Also please throw light on how to stop the changing the price after GR and before IR.
Thanks in Advance.
Narasimhan.J

Hi Kishore,
Thanks for replying. Yes, we use MAP only.
I created a test scenario and changed the GL accounts at Transaction FRL - External activitiy in OBYC settings and could see that the GL account specified in the FRL is picked up to post the price difference.
To the extent of stock availablility it is posted to the FG account and rest is posted to the GL account specified in Transaction FRL in OBYC setting.
Regards
Narasimhan.J

Price difference in the latest invoice document and the last change to

Hi gurus,
This is regarding the price difference of the latest invoice document price with respect to the price of last time the document was invoiced.Without using the customer exit or back-end developement. need info if this can be done on the front-end using the front-end tool bex designer using the CKF, RKF , Variables or conditions etc
say for instance the user wants to get the price differences with respect to the invoices for a certain period that is from 01/01/2008 to 06/30/2008( dynamic entry can be any range).
Once the user enters the range for the billing document date as 01/01/2008 to 06/30/2008 the query should return the report as
Sold-to(customer) Material, Bill doc date and the price difference. these are the four columns the users needs in the report.
now the bill-doc date will the latest invoice date for the sold-to & material, but the price difference will be the price of the last invoice date(for the sold-to , material) - the latest invoice date price.
Example. between 01/101/2008 - 06/30/2008
customer : 2765 , material : XAWE33636FD this particular customer-product had 3 invoices on 02/15/2008 , 04/18/2008 and 06/03/2008.
price on 02/15/2008 : $1.09
price on 04/18/2008: $1.87
price on 06/03/2008: $3.84
so the report should look like
customer material bill doc date price diff
2765 XAWE33636FD 06/03/2008 3.84- 1.87( latest invoice price - last invoice price)
Thanks
appreciate responses

Hi,
I think you will need at least some backend devlopment for this first and foremost being mapping the invoice date from souce to the Bill date.
Getting price difference is not an issue as much as tracking dates. I think you will need a counter to track the last invoice date which really needs ABAP coding
An exit would be much easier to have this functionality rather than to create RKF's and CKF's
I will update you in case any better idea strikes.
Good luck

Price difference-when process change

Hi,
Presently in costing sheet there are two continuous processes, both are considered as SFG (semi finished goods). The SFG 1 material in first process is the BOM part of the second process SFG 3 material. Both process has different cost centres, overheads and cost elements.
Now the second process of SFG material takes more than 9 months. So want to show this WIP under maturation stock, as separate stock under new SFG 2 material, with some value addition (considered as activity). This new process related SFG 2 material BOM will contains the first process SFG 1 material. And this new SFG 2 material code will be the part of BOM of the last process SFG 3 material.
Now there are 2 issues we are facing.
1st query:
In quality server after transporting the request from Development, Price difference account is generated while production of the 3rd Process SFG 3 material.
Production made for 1000 AL Qty (Base Qty of BOM 1000 AL and Costing lot size 1000 AL ) and in the entry we are getting the Price difference entry as shown below.
Dr. Inventory SFG3 - 105,897.43
Cr. Incr/Decr/Cons SFG 3 - 105,900.00
Cr. Price difference - 2.57
Cr. Inventory SFG2 - 94,550.00
Dr. Incr/Decr/Cons SFG2 - 94,550.00
Standard cost of SFG 3 for 1000 AL is 105,897.43 and Standard cost of SFG 2 for 1000 AL is 94,550.00
May i know why the price difference account is picked up while doing the production of existing material SFG 3, when there is no such difference in development server. And no Price difference account in Quality server before introducing the new process?
Regards
Vinu.

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Price Difference from PO

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