Price Variance Analysis

Hi,
Im developing the Price Variance Analysis. How ever im coming across a problem. In the report the client want Unit Price posted from PO and Invoices. On the PO the Unit Price is present. I can bring the unit price directly from the PO. But on the invoice the unit price is not calculated.
Where do i calculate that and how do i bring it in the report?
Also
The Client wants one column for PO/INVOICE, how can i bring both these fields in one column and is there a way we can put a condition such as:
If PO bring in Unit Price, and if Invoice calculate the price.
how can this be done? or is there another way of doing this?
Thanks
Edited by: DANIEL GREEN on Feb 27, 2008 10:38 PM

i found a InfoCube that might be able to help me:
Global Spend (Point-to-Point Connection)
Technical Name: 0BBP_C01
This cube does not have certain key figures such as:
0BBP_DS1_CK012: Net Invoice Price
0BBP_DS1_CK018: Net Price of Purchase Order
0BBP_DS1_CK014: Unit Price Variance
Can i add these key figures into that Cube?
would that affect anything, and would this cube be feasible for Price Variance Analysis?

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Hard to believe: missing report on purchase order price variances ...

dear all-
Happy New Year to you all and all the best for this new 2008!
Traditionally the procurement to pay process is an area that really can benefit from automation. However more important than automation (efficiency), tools that support a process have to be effective first! And provide good understanding of business process at hand by providing information on essential key-figures of the process at hand.
That brings me to the topic of this post: purchase price variance. In my opinion the SAP functionality effectively handles PPV (purchase price variances): variance between purchase price and standard cost (let's call this one PPV1) and the variance between the invoice price and the purchase price (let's call this one PPV2). A good understanding of both PPV1 and PPV2 are useful for potential process improvements ... PPV1 relates more to the efforts of the purchasing deparment and/or determination of pricing in purchase orders while PPV2 brings in the efforts of the vendor.
Anyways, in order to obtain understanding of the variances mentioned, information is needed. E.g. a purchase price variance report or -analysis. I can't find such a report!
I did look on various forums and when I find something that relates to a PPV-report or -analysis, people are discussing ways to create an ABAP-report or query ... Much to my surprise: no clear answers. It looks that such a report even does not exist! That's what I find hard to believe!
Does anyone of you know about a report or analysis-tool on purchase price variances? Or is it really true that such a report is just not there!
thanks,
Ben

Hello Ben,
i have been checking the whole Forum and also asked around collegues and it seems that it is really still true there is no simple report that is showing PPV details (PO price, Invoice price, Standard price and the quantities and values)
I think the solution to get such a report is to programm it Starting point would be the line items on PPV account.
To get such a report with connection between Delivery and Invoice, GR based IV is helpful.
It is unbelivable that this never has been setup !
We are currently using FBL3N on the PPV accounts by current monthe with 2 variants subtotalling on matarial and sorting by high value
Let me know if anybody find a report
Cheers
Tim

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You can create a custom query on your material or purchasing cube containing all your variances required. You can use APD functionality to identify the deviations you want to analyse. Please look 0PP_C01 and 0PP_C05 for planned and actual versions...

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Hi Revanth
Please find the Help From SAP
[SAP HELP|http://help.sap.com/saphelp_dimp50/helpdata/EN/90/ba6228446711d189420000e829fbbd/content.htm]
[SAP HELP|http://help.sap.com/saphelp_dimp50/helpdata/en/90/ba6b15446711d189420000e829fbbd/content.htm]
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Price Variances, Accruals, Drill Down

I am working on a site with GEMMS 4.1 and Oracle Financials R11. I know Financials but GEMMS is new to me so I hope someone can help! My questions are:
a) Where in GEMMS is the Price Variance account code defined?
b) Is it possible to have price variances automatically coded to the expense code rather than a separate price variance account?
c) Is it possible to switch off perpetual accruals for non-inventory items (I know this is possible in Oracle Purchasing for expense items)?
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null

A. The PPV account (as all accounts) is defined in the Manufacturing Accounting Controller>Account Mapping. Note that the segments must be defined in OraFin GL first.
B. PPV is only created for inventoriable items. Non-inventory (expense) items do not have PPV, so the entire PO cost goes to the expense account for the item.
C. You can turn-off the accrue at receipts option, but NOT if you are integrated with OraFin.
D. There is no standard report that gives you the detail of the GRNI (aka Accrued Accounts Payable AAP account in GEMMS terms). It is quite a task to build one, but it can be done.
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Invoice price variance

Hi gurus,
Can anybody please let me know where to look for the settings for invoice price variance. The PO was created for material A for 26.01 USD for 1EA for 6EA. Therefore the GR amount is 156.06 USD (26.016). We received the invoice for 48.41 USD for 1 EA, therefore the total is 290.46 for 6EA (48.416). accounting have blocked the invoice. Where can we check in the system for the invoice tolerances so that it explains why the invoice is blocked. I also want to know whether the invoice was blocked manully or system atuomatically did it? Now how can accounting correct this anamoly?
Thanks
Anusha

I guess your invoice has automatically been blocked for payment because either the upper absolute or the percentage limit has been exceeded by the amount specified in customizing for key PP
Go to OMR6, key PP and check the settings
Accounting can release the invoice for payment through Tcode MRBR
See following wikis for some additional information:
http://wiki.sdn.sap.com/wiki/display/ERPSCM/MM-IV-LIV-CRESetTolerancesforIncoming+Invoice
http://wiki.sdn.sap.com/wiki/display/ERPSCM/MM-IV-LIV-MRBRInvoiceReleaseinLIVTransactionMRBR
Regards
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Invoice Price Variance Report

Hi,
When the IPV report is run for a particular month , I find a variance value of -759 against an account. But when I look in Payables entries for this account, I find an additional -1329 , in addition to -759 and when I drill down these are identified as Invoice Price Variance. Why isn't the report picking up this entry ? For these entry lines the source is "Cost Management". Please provide me with some pointers to this.
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Meenakshi

hi
thanks for your reply. assume that PO total is 150. invoice is created of 100. in this case should i see an amount in Invoice Price Variance? im not seeing any change in Invoice Price Variance. for me what happens here is Transaction Amount - Accounted is shown -50 as its still to create an invoice of amount 50 which is in fact the accrual balance. pls give me a feedback on this. i want to produce a scenario which will make the invoice price variance more or less than 0.
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CST amount is debit in the purchase price variance

Hi
We are maintaining std in the materials master
and price procedure as taxinj
While doing migo, the CST amount is debit in the purchase price variance and credit in the GR/IR RM,
We need to debit the CST amount in the in the Raw material account
what are the settings i need to carry out Plz give suitable suggestions.
in tax code we are not maintining any G/L account for the CST
Edited by: K. Raghuram on May 19, 2009 12:48 PM
Edited by: K. Raghuram on May 19, 2009 1:02 PM

Hi Raghuram,
I think,the only possiblity for this to happen is due to the standard Price in the Mterial Mater you are using.
Means in the Material Master ,the Price key is a standard pricing.
So ,when ever you do a GRN ,the PO value will go and hit the Material account upto to the Standard price maintained in the material Master.
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so in your case ,the CST is inventorised one ,i believe.. so that is the reason it is behaving so.
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Good Receipt is posted to price variance account instead of Inventory account

Dear All,
My client have a PO with three materials. All those materials have been assigned to same valuation class. Client has posted GR for this PO and one material has been recorded a misbehavior when selecting the accounts. That mean, it has been ignored the inventory account and instead value has been posted to price variance account. So the debit entry in price variance and credit entry in GR/IR.
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Dear Vivek and Dev,
Attached herewith the screenprint of Accounting view of the two material. Material 300000075 has the correct posting while material 300000028 has recorded incorrect posting
1

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Hi,
Is there any standard report for finding Purchase Price Variance between Purchase Order and Material master
regards,
Mallik

Hi Mallik,
There is no std report for Purchase price variance .
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Now go to KSB1 . In the cost element field give the PRD G/L account .
After executing change the layout as per your requirement .
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Otherwise you need to develop a customised report .
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Hi,
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I am looking to find how the numbers add up.
Thanks for your help.
Ram
Message was edited by:
        Ram R

Thanks Sridhar,
When I analyse the report S_ALR_87013139 - Cumulative , for a product for a period (with no scrap), I get the following
Target (Deb) -   46,855.55
Act (Deb) - 58,315.87
Scrap - 0.00
Var W/O- Scrap - 11,269
WIP- 0
Control Cost - 0
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Could you please tell me how SAP would update this report with target & actual costs with respect to open production orders, carried over from previous periods.
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Ram

Purchase price variance line item - not to be posted in Parallel currency

Hi All,
Scenario:
Transaction currency - SGD
Local Currency - INR
Parallel Currency 1 (LC2) - Group currency - USD
Parallel Currency 2 (LC3) - Global Company currency - INR
Import PO - MIGO - MIRO
PO is raised in foreign currency.
Material master price control is maintained in 'S'.
While doing MIGO, I am getting following accounting entries:
Stock a/c Dr.
GR/IR a/c Cr.
Price variance* a/c Dr.
*The price varaince is because of difference in my material price as per material master and PO.
If I go and check in FBL3N, I can see all the line items in Transaction, Local currency and 2 Parallel currencies.
My query is, In SAP is it possible to avoid Price variance line item posting to Parallel currencies.
To my knowledge I know that it is not possible to avoid a single line to post it to Parallel currencies.
Thanks in advance.

This is the answer from OSS
Dear Customer,
the system works as designed.
When Material Ledger is activated, price differences are always
generated under the circumstances you have described. The reason is
that when material ledger is activated, price differences must not be
included into the stock changes value, otherwise the system would
not be able to calculate an actual price.
When Material Ledger is activated, the customizing setting
for handling price differences in the subcontracting process has no
effect.
Best regards,
Santiago Lorite
AGS Primary Support, Business Suite & Technology u2013 Logistics

Moving average price variance in Invoice verification

Hello,
I set in sys that the moving average of price variance will be check in tolerance of x% (lower & upper limit) BUT the system ignore it , when I save an Invoice (MIRO) with price that change the moving average price for more than X% the invoice was saved with no W/E massage . I set all massages that seams to be relevant with E but nothing was happened .
What is the way to set the system that in Invoice verification stage it will check the moving average price variance and give an alert or will not let the invoice to be post ???
Best Regards
Idit

Hi,
You can block Invoices using transaction code OMC0
(a) Use Tolerancy Key VP for your company code
(b) Fill-up Lower and Upper check tolerance limit %
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Muralidhara

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We have 2 issues.
1. The account behind DIF is used for normal merchandise purchasing which isn't account assigned and doesn't reflect the GL account for the asset class.
2. The asset number is not being passed to the price variance posting (this could be a result of the GL account config since our normal merchandise purchasing doesn't carry a WBS).
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thanks for your time and help.
Christie
Message was edited by:
Christie Monacos

Triplicate thread :-)
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Standard Report for Price Variance

Dear Friends,
Business is asking for the Price Varinace Report in standard SAP based on following criteriau2019s
The requirement is to have a report which provide :
·         Purchase price variance u2013 PO V/s Invoice which is posted to General ledger.
·         By Vendor ( both third Party & Intercompany) with Vendor number and name.
·         By Material code & Material description and Material class
·         By Purchase order
·         For a given month or Year to date.
·         By GL code where the purchase price ( PO v/s invoice) is posted.
Is there any standard report available for this in SAP or is it should be customised, if so is it complex...
Please suggest me on the same
Thank you for your promt reply
Radhika Eluri

Hi Santosh,
I could not find the related reports for the same which i can show to the user.
Could you please give me what are those reports available(Even they are not completed) so that i can provide the same to business.
If they are not satisfied with them, then we will go for developemnt
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Radhika Eluri

Price Variance Analysis

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