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

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Price Difference during GR

Hi,
I have a material on Moving Average Price which was extended to a new plant that was configured. During GR, some amount of significant value is posting to the Variance account. This is the first GR for the new plant and also the first material to be posted. How can a variance account be hit during the GR process ? There is no differnece is quantity between PO and GR. Also the amount is correct. The question of shortage of stock does not arise in this case at all.
Is there any reason why Variance account is hit during GR other than Price and quantity differences?

Hi
The reason for price difference is the price difference between PO price and Mvg avg price.
If this is not the case, in the extended plant if the price control is std cost, the price difference between the price mentioned in the price control and the PO might be the variance.
Regards,
Suraj

Is the difference that significant?

Is the difference that significant between the NEW 2.1 gig 20' and the older 1.8 20" iMacs?
are the improvements in video card, bus speed, processor speed and memory THAT worth it to get the newer machine with the higher price?
I am going to use my machine for small graphic jobs, inetrnet and some gaming at home. Do you think I need to spring for the most up-to-date machine or is a certified machine ok (I would add ram)?
ps...disk storage is not really an issue as I have external now. I just need a superdrive I think...and I can ADD iSight if I really need it
Opinions?
chaz

Chaz,
Performance between a 1.8 GHz G5 vs. a 2.1 GHz G5 isn't going to be that great. The upgrade in video card will provide a more noticable improvement in gaming, if you are playing any games that have reached the limits of your 64MB nVidia 5200 card. But if your current video processor is handling the games you play just fine, say 40 fps, then getting 52 fps out of the new card isn't going to give any noticable difference.
The key thing to look at is cost. What are you going to get for selling your old 20" 1.8 vs. the actual price of buying the new 20" iMac 2.1, after you add more RAM, sales tax, auction fees for your old iMac, etc. The cost difference is going to be several hundred, maybe even along the lines of $600-800. So is it worth it for the small speed increase? If you have the cash to spend, then go for it.

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

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 / IR and Price Differences

Hi
A question on price differences.
We currently post our price differences at goods receipt (PO price - Std price).
And secondly at invoice receipt (PO price - Actual price)
In order to be able to analyze easier, we want to post goods receipts always against standard price.
At invoice receipt the full price differences should be posted then.
Does anyone know if and how this setting is possible in SAP ?
Thanks.

Hi
If PO is created for 90 then how you are paying 93 to vendor. You are following PO based IV?
If you want to pay more to vendor then better to use the option debit material in IV.
In MIRO enter 90 in item details and 3 in material tab and 93 in invoice amount field.
Then your postings will be
GR/IR 90 debit
Material 3 debit
Vendor 93 credit.
Thanks

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 differences and GR/IR

Hi
A question on price differences.
We currently post our price differences at goods receipt (PO price - Std price).
And secondly at invoice receipt (PO price - Actual price)
In order to be able to analyze easier, we want to post goods receipts always against standard price.
At invoice receipt the full price differences should be posted then.
Does anyone know if and how this setting is possible in SAP ?
Thanks.

Unfortunately, I'm not sure if this can be done. I just wanted to point out that you may wish to reconsider doing this as some of your receipts would not have variances recognized until a month or so after the original goods receipt. If the terms are net 30 (or whatever), the invoice would not be paid for 30 days and the variance wouldn't be recorded until the invoice is paid. The idea behind using the PO Expected Price is to book the amount as close to 'actual' as possible upon receipt of the goods.

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 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

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

Quantity & price difference between purchase order and goods receipt

goods receipt against purchase order
inventory a/c    dr
   gr/ir clearing a/c    cr
if there is any quantity & price difference in between PO and GR ex- PO order -1000 bags @ rs 10 but good receipt 900 @ Rs 10
then how the price difference and quantity diference treated in sap
what will be the entries, how we adjust it.
regards
siba

kindly note that depending on the Moving average or standard price (price control flag in mm01) the difference will either get adjusted with the material or to the price difference account accordingly.
in the example for standard price
         gr for po :10 bags @ 11
dr stock 100
cr gr/ir 110
dr price diff 10
the above is in case of material maitained at 'Standard price' in the mm03.
regards
eashwar

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.

Allocation of Price Difference

Dear Experts,
I am working for a cement industry. One of our Semi Finished material is Clinker which we will be using against production of cement and we sell clinker also.
The price control for Clinker is maintained as standard in system (150). There are 10 process orders for Clinker (5000 TO) and against each process order I have Variance totalling to 10000.
So the actual cost of 5000 TO should be = 150 * 5000 + 10000
                                                                  = 750000 + 10000
                                                                  = 760000
In my Production order Price Difference GL I can find the Production order variance 10000 + variance due to change in price
Production order Price Difference GL = 10000 + 2500
                                                            = 12500
The total production of Clinker is 5000 TO.
I have sold 1500 TO, 2500 Issued against process order and 1000 TO in my stock.
All has gone at standard price i.e 150 / To
I would like to know how I can allocate the production order variance of 10000 against Goods Sold, Goods Issued, Closing Stock.
Is there any way system will give me the allocation chart. Please help.
Thanks.

Hi
You can use KKO0 reports to see variance per cost component...
Map each of these act types to a separate cost como in OKTZ... Assign this cost comp in OKN0 and choose Mat Grup = Product Group
Then run KKRV to collect the data followed by KKO0
Ajay M

Price Difference GL significance

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