Price Variance - MIRO

Experts,
We created a PO for one single item for a particular quanity and a particular amt. However, when we received the IR, the amount on the invoice is different than the amount on PO - What are the ways to handle these exceptions. Basically, I am looking for a configuration saying anything under the price variance of 300 USD is ok, but for anything above, an approval is needed.
All answers/inputs/thoughts would be duly appreciated and rewarded with points.
Thanks,
Nandita

hi,
Check the below link to understand why price variance is appearing
Re: MIR7 / MIRO
thanks and regards
Praveen.J

Similar Messages

MIRO price variance at document level

Hi all,
Normally the MIRO price variance PP will be applicable for this company code and item level of the purchase order.
it is possible to control the PP Document no level instead of po item level?..
any possiblities in standard..

Hi Palanisamy,
As far as I know this is the only way the system works because we all know that each line item has its own quantity, material type, net price, conditions... If the system process the price differences at header level, how does it know how to allocate the whole amount of difference to what stock account, and should be based on what criterion?
So, in short, I think that the way the system works at the moments is totally reasonable.
Best,

MIRO - PRICE VARIANCE POSTINGS APPEAR

Hello,
During posting of a logistic invoice, automatically an price variance posting line appears deducting the' Invoices to be received 'amount...
any idea why this price variant posting comes up?
Thanks

hi,
Check the below link to understand why price variance is appearing
Re: MIR7 / MIRO
thanks and regards
Praveen.J

Price Variance (PP) - MIRO

Hi Guys,
Can you please explain how the PP tolerance in MIRO works with an example and about absolate, Min tolerance and Max Tolerance Limits?
Thanks in Advance,
Laxmi.

Hi
http://help.sap.com/saphelp_45b/helpdata/en/47/60fa3d49f011d1894c0000e829fbbd/frameset.htm
Suppose if PO price is $100 then system should allow up to $105 with out blocking means with percentage of 5%. If it exceeds 5% system should block the invoice.
Maintain the configure in
SPRO-> IMG-> MM -> Purchasing-> Purchase Order-> Set Tolerance Limits for Price Variance
Here you can maintain the tolerance limits for key PE: Price variance: purchasing
Then,Invoice will be blocked 'R'
Invoice is blocked, all the items are blocked. Even if the invoice only displays variances in one item, the whole invoice is blocked for payment.
If you post an invoice with a blocking reason, the system carries out two steps:
The account postings resulting from the invoice are made.
In the vendor item, the system enters an 'R' in the field Payment block so that Financial Accounting cannot make payment for the invoice.
Go to TCode OMR6 (Invoice Block under the LIV section of the IMG) and drill into the CoCd and the Tolerance Key PP. Activate the lower limit check by selecting teh Check Limit button and put in a Value, a Percentage, or both. Save it and that should give you what you're looking for.
Tolerance Conditions T.Code:OMR6
Tolerance Limit
BD Form small differences automatically 100 UPPER
BR Percentage OPUn variance (IR before GR) 5% UPPER AND LOWER
BW Percentage OPUn variance (GR before IR) 1% UPPER AND LOWER
DQ Exceed amount: quantity variance 0 UPPER (NO TOLERANCE)
DW Quantity variance when GR qty = zero 0 UPPER (NO TOLERANCE)
KW Var. from condition value NO CHECK
PP Price variance 5% UPPER AND LOWER
PS Price variance: estimated price 5% UPPER AND LOWER
ST Date variance (value x days) NO CHECK
VP Moving average price variance NO CHECK
Regards

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 %
When a stock posting line is created as a result of an invoice item, the system calculates the new moving average price that results from the posting. It compares the percentage variance of the new moving average price to the old price using the percentage tolerance limits defined.
Bye,
Muralidhara

Asset PO Price Variance posting w/out asset account assignmt to wrong acct

We're bringing up fixed assets and are struggling with the account assignment behind PO Invoice receipt (MIRO) and price differences. At the moment, the PO is A account assigned and has the standard SAP settings except that the GR is valuated and the account assignment indicator is single instead of multiple. When we process MIRO, if there's a price difference, it hits the table 30 account assignment for the DIF trxn key.
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).
We have an additional wrinkle in that we do a shadow posting to a WBS element as well as the asset number in MIRO. It seems to work fine so long as we don't have a price variance.
From reading documentation, it appears the price variance should be posting to the asset so we appear to have mis-configured something. I'm hoping it's not the valuated GR as we have a business requirement to show the value of the item when we receive it. In any case, we can't figure out what we're missing. Any assistance would be greatly appreciated.
thanks for your time and help.
Christie
Message was edited by:
Christie Monacos

Triplicate thread :-)
Getting error wrong number or type of parameters for EAM_PROCESS_WO_PUB
wrong number or types of arguments in call to 'PROCESS_MASTER_CHILD_WO'

Purchase Price Variance - Exchange

Hi,
When we do IR for a PO, there is an entry in the accounting document for the Purchase Price Variance -Exchange. How is this entry computed or during what cases is this entry added in the accounting doc ? The IR done is with reference to a PO in a foreign currency.
Thanks.

Hi
Due to foregin exchange rate at the time of MIGO and MIRO their is entry in Purchase Price Variance -Exchange

Invoice Block due to price variance

Dear Friends,
In invoice verification I have configured invoice block for price variance (PP).
I have mentioned upper limit as 5%.
PO---100
GRN---100
Invoice---120
I have made this as warning message. I want this should not be open for payment before releasing in MRBR. After posting the document in MIRO it shows that invoice is blocked for payment. The payment bock indicator in payment tab in MIRO shows as "R"--Invoice verificatin.
But system allows this document for payment to be done both in f-58 & f-53.
So please tell me how to stop payment to be done before releasing it in MRBR.
Regards
R Panda

Hi
I think you may be missing some settings in FI, thats the reason it is allowing to pay the invoice whcih are blocked for payment.
Please check with your FI consultant
Thanks & Regards
Kishore

Unplanned Freight and Price Variance

Hello Friends,
When I enter in incoming invoice in MIRO and I have unplanned freight and price variance. When I enter in variance by it self it works fine and the variance goes to the right GL. For example when I have Freight of $100 and price variance of $200 and I post it together here is what it shows when I simulate:
FLTR 3M DUST &POLE                                      $8.75
FLTR 3M DUST &POLE                                      $59.48
COS-P.O VARIANCE ADJ                                   $31.49
RENT-EQUIPMENT & AUDIT                               $200.28
Is there anyway I can fix this where the variance would be $200 and the rest post accordingly. Please help will reward points for helpful answers.
Regards,
Monika

Hello Monika,
What type of price of control do you have on your materials? If the price control is set for moving average price (V), then I would expect any variance between PO price and invoice price to be reflected back to the moving average price of the material (e.g. your PO line item).
Unplanned freight can definitely configured to post to its own account.
Hope this helps.

How to calculate moving average price(MAP) when price variance in IV

Hi All,
My current stock for a material is 39 and MAP is 0.8 GBP.
A purchase order is created for the material for a quantity of 1 at price of 0.8 GBP per unit.
Invoice is posted for the above PO at price of 1.74 GBP.
What will be the new MAP for the material now??How to calculate MAP when there is a price variance in Invoice?
Please suggest ASAP.

Hi,
The Procedure for calculating MAP is :-
Case 1 :- PO at different price
If in Material Master your MAP is 0.8GBP & closing stock of 30Nos, value is 24GBP
In PO if the price is 0.9GBP & qty is 10nos, then after Goods Receipt Total Value of the GR i.e. Qty * Price + any other delivery cost will be added to the material stock value. Qty is also updated. New Total Value / New Stock Qty will be MAP.
In this case Qty received 10 & price is 0.9 that means value would be 9GBP.
Total Value becomes 24GBP (Present Stock) + 9GBP (Goods Receipt) = 33GBP
Total Qty becomes 30Nos + 10Nos (Goods Receipt) = 40Nos
MAP becomes = 33GBP / 44Nos = 0.75
Case 2 : Invoice Posting (MIRO) at different price than PO
While doing MIRO is we post at different price system will check whether sufficient stock posted in GR is available. In the above case it is 10Nos,
If it is there, then the above logic as in case 1 will take place
If not available, to the extent of stock availability system will post the different value & adjust MAP & remaining is posted to Price Difference Account.
In your case it would be like this :
1. MAP 0.8 for 30Nos (Value would be 24GBP)
2. Invoice Posting 1.74GBP for 1No. That means value would be 24GBP + 1.74GBP = 25.74GBP
Qty would be 30+1 = 40
MAP = 25.74 / 40 = 0.64GBP
Hope this clarifies your doubt
regards,
JP

Wrongly picking price variance account

Hi Experts,
I am trying to post the Invoice through MIRO related to stock. there is a bit price difference. Hence it is going to Price variance account. But the Account maintained for the valuation class of that material in OMWB is different from that being picked up while simulating invoice(MIRO). How is this possible. Is there any other setting from where it is picking up other account.

Hi,
Thanks for your reply, but OBYC and OMWB are the same. from omwb we go to t.code obyc and many others. I have checked the account maintained in PRD.
What else can be the possibility.

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

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
Sidi

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.
Thanks,
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.
thanks
Lisan

Price Variance - MIRO

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