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.
Regards.
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

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Hi Divya.......
There is no difference between raw material and inventory account. Infact the raw material is nothing but stock and stock includes the finished semifinished product also. In short the stock account belongs to the category inventory account.......
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Simulate Price change in raw material

Dear All.
How can I simulate the new cost of all my FERT materials, if we have a price increase in a RAW material that is used in almost all FERT's.
please help.

Hi,
create a costing variant using a valuation variant that valuates materials with priority 1 the new price from a "planned price field" in controlling 2 in material master (were you've maintained the new price for this specific material) and as priority 2 the price as in your old variant (for the materials where the price remains unchanged). Do not allow any price update for this costing variant to avoid erroneous use of this variant.
Create a plan cost estimate for the same (reference) material(s) with your old and the new costing varinat, compare the same.
Use report RKKBCAL2 do compare the results of 2 costing runs (again one with the old costing variant one with the new).
best regards, Christian

Price update from Original Material to copied Material Master

I have a scenario,
We are selling Raw materials to outside companies who have shortage of materials on Loan Basis. Once they have materials, they will return the materials within a time period. If they don't have the materials and unable to return within the said time, they will make the payment.
We will follow the normal sales process to sell the item to the customer.
1. creating sales order,
2. Outbound Delivery, and
3. Billing
Return process when receiving the materials from the company.
1. Billing Cancellation
2. PGI Cancellation
Since this is not an actual sale, hence we need to maintain selling price same as the purchase price.
We are planning to extend the Raw Materials to Sales View in the material master. However, we came to know that this will be Violation of Act. Hence we are planning to create a new material by copying the existing Raw Material master but the Material type will be Issue on Loan. This material will have sales view and purchase view.
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The same price needs to be updated in the Sales Order automatically from the Loan Material Master when selling the Loan Material.
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Please suggest a work around?

Hi,
Let me explain to you how I am proceeding.
Step 1:
Create new material master by copying existing Raw Material with Issue on Loan material type. I am assigning a new Valuation Class in this material master. Also, we keep the pricing
Step 2:
Transfer stock from old material to new material in MB1B with movement type 309.
Step 3: Issue of Loan Material to Customer on loan basis.
Creating Sales Order, PGI and Billing
Step 4: Receipt of Item back from Customer
Sales Return process.
Step 5: In case Customer does not return goods, then we will collect payment from them
In the entire process we need to maintain the selling price at purchase price of the original material. Can you suggest any work around, in case this process is not advisable.

Price difference in MAP material

Hi,
I am taking a material which is managed Batch wise and split valuation is active, while valuation type is moving average price.
when doing the goods issue for the material, it is hitting the entry in Price difference account..
But when I am reversing the same GI document, it does not hit the Price Difference account. It loads the Price difference on inventory.
but requirement is that, during reversal of goods issue it should post the PRD account by whatever amount was posted in PRD account during Goods Issue.
Please help me out, how to solve this. By any means, can we post the entry in PRD when material is managed by MAP.
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Hi,
Material A is batch managed with split valuation active. In the material master valuation type MAP is maintained.
When doing the Good Receipt of this material with quantity 1, with 475 $, MAP changes to 475$ for newly generated batch valuation.
When doing the Goods Issue at 300$ with quantity 1, inventory account is credited by 300$, and 175$ is debited to Gain/loss account.
When reversing this GI document, material account is debited by 475$. But my requirement is that, it should debit material account by 300$ only and 175$ should be credited to Gain/loss account.
Hope, now I am able to clear my requirement.
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Varun

Cost price calculation of raw material

I want to know how cost price of raw material is calculated in sap. Is it when ever price changes we have to go to each material code and change the price or we can have our own policy?
Edited by: gururaj gadgoli on Sep 18, 2008 1:05 PM

Dear,
For Raw material costing please have a look at :
http://help.sap.com/saphelp_erp60_sp/helpdata/en/b8/9c76a0c89c11d189990000e8214595/content.htm
and also
http://www.sap-basis-abap.com/sapcostd.htm
http://www.sap-img.com/materials/price-control-v-or-s-in-material-type.htm
Regards,
Syed Hussain.

How to Control Finished Product Price based on Raw Material

Hi Experts,
Our client manufactures Steel Products where basic Raw Material is Steel.
Customer will give annual contract/Sales Order on the rate prevailing on the contract date. But there is clause that if Steel prices increase / decrease by 5% then correspondingly Finished product price will change by 3%.
How can this be mapped in SAP where by based on Raw Material price, Finished product can vary?
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Hi Ajay,
Please go through this link. you will get an idea
Price list change according to raw material cost
Thanks
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To update Planned price 1 in Raw material.

HI Experts,
our requirements is to update Planned price 1 in costing tab of Raw Material.
Can we use MR21 to update.
some of the discussion forums i found that MR21 updates only moving price only.
Kindly help.
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HI,
The requirement is to execute the cost estimate quaterly for planned price 1.
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Deriving the valuation type of a product automatically from raw material

Hello everyone,
I want to know if it is possible to make it such that a product gets its valuation type automatically according to the valuation type of the raw materials that go into its production. For instance:
Say, I have a product P1001, to produce 1 PC of which takes 3 KG of raw material R1001. P1001 has the valuation types PRD01 and PRD02 assigned, while R1001 has RAW01 and RAW02. I want P1001 to have PRD01 when the R1001 used for it has RAW01, but PRD02 when RAW02.
Is this at all possible? I was thinking maybe product cost collectors, production versions and BOMs could somehow be used for a workaround; except there is no apparent connection to valuation types in any of these.
Thanks in advance.

Hi,
Generally MRP consider stock from all the storage location when run the MRP for Plant level for material.
However we can exclude the particular storage location from MRP Run, for those following settings to be done.
Go to MRP-2 View of material master and select the storage location to be excluded from MRP. (Press Shift +f1 ex .sloc2) As per your case it should be RMSL
In that MRP view go to Storage location MRP Tab.
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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

Excise invoice for price difference required with material code

Hi
In my scenario, we have charged less amount to customer at the time of sales.
For ex: Sales order was prepared for Rs.10000 and relevant excise duty was (@ 10% was charged). We did delivery and billing. We issued excise invoice as per Rs.10000 and relevant excise duty on it.
But actual basic price is 10100. We will charge Rs.100 and we have to charge relevant excise duty on it. However there will be no material movement.
1st i posted Debit note to customer with FB70 with following entry:
Customer A/c.. Dr 110 (100 + 10% excise)
To Sales A/c 100
To Excise Paid A/c 10
Then i went to J1IH and gave FB70 document reference. Following entry was posted
Excise Paid A/c... Dr 10 (This amount i gave manually which is OK)
To Excise Duty Receivable 10
Now my doubts:
1. How to credit Excise Duty Payable in J1IH. Which transaction type i need to check for it (DIEX or OTH, etc)
2. How should i take print of excise invoice (for above J1IH). My material number should also get printed on invoice. But i am not specifying any material in J1IH
3. 2. Can i create separate transaction type and then use it to J1IH. If yes then how to create and assign

Hi Tanveer
I did following steps based on you input
VA01 - Created Debit Memo no. 3
VF01 - Billing Number: 130012001 and accounting document number: 100000248.
J1IS - Clicked on create icon. Entered billing number 130012001, transaction type as OTHR and other CIN related details.
It went to next screen. In that screen manually gave material code, units assesable value, chapter id, Basic Ex duty, Ecess and SHEC.
After giving it gave prompt: Excise Duty will be recalculated. I clicked on YES.
Entire line item got deleted and nothing happened.
Please help how to proceed in J1IS with above mentioned data. Which all field needs to be filled in J1IS.
Please help.
Edited by: Meenu_ND on Jan 23, 2012 2:54 AM
Edited by: Meenu_ND on Jan 23, 2012 2:55 AM

Price list change according to raw material cost

Dear Experts,
We are currently working in a client where for those products for which the raw material is the main component as the cost of the raw materials varies with a high frequency (daily or weekly) the list price (the price we want to invoice to customers) should be updated accordingly and automatically with a specific mark up.
Have you found a similar requirement in any client? If yes, could you explain us from a functional perspective how (SAP standard functionality or custom development with a detailed explanation of the solution) you solved this requirement?
Is there any procedure to do regular massive updates of Finished Good price lists based on the actual variation (and/or expected variation) of raw materials cost?
Thanks in advance for your help.
M.Baig

Hi Baig,
It is possible to determine the price based on the raw material cost. I dont know whether you are using Moving average price or standard price for the raw material cost.
Whatever be the method, when you create the sales order, it is possible to take the raw material cost on the date of order creation using one of teh cost condition types like VPRS. You can use this condition type as statistical.
You can also have another condition type which is the mark up on this cost.
Now you can calculate your grossprice using another condition type which total up the cost in VPRS condition type adn the mark up %, either through just configuration or by means of a calculation type routine created in VOFM adn then assigning the same for the gross price condition type.
I you have any concerns, pls lemme know.

On costing run, Raw material price in Std price field is getting updated

Hi All
When i am executing costing run (CK40N) for a FG, the price field in Std price for a raw material is getting updated.
We are maintining price control as "V" in case of raw material.
Is this right? if not, how can this be avoided.
Regards
Rakesh Hase

HI Ian,
Given enough time and money, anything is possible....
You do not say which industry you are operating in. In some SAP industry solutions the functionality you describe is available - if I remember correctly IS Mill Product has something like that. It is available for use by companies that for example make copper cable. They get a regular copper price from an exchange.
But it would be relatively simple to get a feed from an exchange with the daily closing price, and then write a little program that will read that file and post an MR21 transaction to update the price.

CK24 error for raw material

Dear All,
We have executed CK11N of current period for single Raw Material ( w/o quantity struc. Selected in material master) and saved it, but when try to mark & release the material for the current period, the system displays a message as u201COf 0 materials, 0 cost estimates were updated successfullyu201D. Its newly procured raw material.
When we check in KEKO, KEPH & CKIS table the entry exists, but we are not able to execute the standard price for this raw material. In the start of this period we have executed CK40 for all the material (including raw materials) has been updated with standard price.
We have deleted the costing run couple of times and recreated the cost estimation,but of no use.
We have activated Material Ledger and this raw material has price control u2018Su2019 with price determination u20183u2019. We are in ecc 6.03
Do suggest.

Hi ,
We are facing this problem for all type of material. Once we save cost estimation in CK11N and when we try execute once again CK11n for the same material system is calculating Cost estimation again without error message and we are not able to Mark & Release the Cost estimation.
Normally the system will not allow to calculate the cost estimation,if the cost estimation has been already calculated.
We have currently changed price control S from V for all type of material to maintain Standard cost from Actual cost.
Do suggest,if we have left out any config settings.
We are facing this issue in production client.
Do revert.
Regards,

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 from Raw Material

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