Purchase Price Variance Foreign Exchange difference

How Purchase Price Variance Foreign Exchange difference is calculated for material consumed in product costing / material ledger

You need to go to net price at purchase order in local currency. With quantity you'll get the purchase order total price in local currency.
Get the standard price of material master record (which is in purchase order) on MM03 transaction on costing 2 view.
Purchase price variance is the difference between purchase price order and material standard price.
To get this difference in foreing currency, you´ll need to get document date of purchase order, get exchange rate at OB08 and find both prices in foreign currency; after that get same way the variance.
Hope that helps,

Similar Messages

  • Purchase price variance-Foreign exchange

    HI Experts,
    as per my business process
    PPV-fx means
    The Foreign Exchange rate difference between the average exchange rate of the month that the invoice is booked and the standard company xxxxx exchange rate that company xxxxx applies for actual costing and where company xxxxx bases their hedge policy on.
    for this month my ppv-fx is 30000
    i want to know how this got calculated?
    how can i see average exchange rate of the month for all the invoices and standard exchange rate for actual costing?

    Hi
    Acually the forex valuation at time one rate,
    The system calcualtion rate at end month different rate,
    so revauation for exchange rates,invoice dates and document dates.
    any clarification call me+91 9962155061
    Edited by: jyothi reddy on May 10, 2010 10:04 PM

  • 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

  • Material purchase price variance and different cuurrency in IR

    we have a requirement to split  price variance and freight purchase price variance in goods receipt stage, but the problem is condition type can not be assigned COPC original group. so what are the tables I can use to split the two ppvariance using customized report?
    also in GR, accrued freight now is using month end rate, but we want it to be planned rate(another exchange rate type), is it possible to configure?
    during invoice recept, standard can't maintain different currency from PO currency, is it possible to reconfigure the system to use another currency for invoice recept?

    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

  • 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.
    if the amount is more than it ,then amount difference will hit the Price variance account.
    so in your case ,the CST is inventorised one ,i believe.. so that is the reason it is behaving so.
    if there is somethig else required.provide a clear insight of the Problem.
    Regards
    Anjanna

  • Report for Purchase Price Variance

    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 .
    But you can check KSB1 , where you can find the Price difference which is going to your PRD account .
    You can find out your PRD G/L account .
    Now go to KSB1 . In the cost element field give the PRD G/L account .
    After executing change the layout as per your requirement .
    Now you can see the Pur Price variance for the particulat material for the PO .
    Otherwise you need to develop a customised report .
    Hope this helps .
    regards

  • Purchase price variance in subcontracting order

    Our customer has the following scenario:
         Purchase account is posted with the value of stock subsequently purchase price variance is a legal account
         Material ledger is active
         Inventories are managed with standard price for each material code
         Latin method management of inventories post stock values on managerial account
    In good receipt with a subcontracting order, in case of purchase price variance, legal account of purchase price variance is posted generating a wrong reconciliation between managerial and legal posting.
    Example
    The subcontractor is a co packer that assembles material A to produce material B
    Material  A has a standard price of   3
    Material B has a standard price of     5
    If Co packer fees have a value     of     2 no purchase price variance occurs during good receipt, as a matter of fact :
    (Co packing fees) 2 + (Material A)  3 = (Material B) 5
    Else if co packer fees have a value of 3 a purchase price variance of 1 occurs and itu2019s posted using transaction key u201CPRDu201D. On FI the following document is posted:
    Legenda  : L stands for legal account , M stands for managerial account
    (L) Co packing Fees                                         3
    (L) Invoice to receive                                     3
    (L)Purchase price variance                            1
    (M) Consumption Material A                           3
    (M) Stock  Material              A                            3
    (M) Stock Material               B                            5
    (M) Production Confirmation  Material B       6
    In this scenario Purchase price variance should be a managerial account, but  transaction key is PRD  and  changing the account would affect every posting.

    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

  • Purchase price variance

    Hi
    I want to to drill down the purchase price variance.Say I have PPV of 10K. I want to drill down to details of 10k.How to proceed.What is the transaction code for that?
    Thanks in advance.
    SN

    Hi Satya,
    Variances are based around the standard values that are set up in the Material Master file. These standard values represent what it "should" cost to produce (or purchase) a unit of the product. Variances are calculated automatically when settlement jobs are ran in SAP
    purchase price variances are caused by a difference between the standard cost in the MM file and the actual price on the purchase order.
    The entries will b something like this
    Debit Inventory XXXXX
    Credit Accounts Payable XXXXX
    Credit Price Variance XXXXX
    Regards
    Genie

  • Purchase Price Variance Split

    hi
    how to implemente the Purchase Price Variance
    what we need for implement.

    Hi,
    Goto T.code OBYC  and PRD-Cost (price) differences and configure you purchase price accounts.
    Thanks,
    Rau

  • OSP resource cost debited in 'Purchase Price Variance'

    Hi all
    Can you help me how to fix the issue of 'OSP resource cost' debited in 'Purchase Price Variance' instead of WIP cost.
    Please note that the 'Standard Cost' in resource definition is disabled.
    Note that the costing followed is 'Average'.
    Thanks in advance for the help.
    regards
    Raffath

    Raffath,
    You veriy the rate in both resource window and in P.O, there may be a scope that P.O may be ammended and Resource rate may not be changed, this difference will be affected in PPV account.
    Regards,
    Jaan

  • Configure GRIR account and Purchase Price variance

    Hi,
    Please explain steps involved in GRIR configuration and Purchase Price Variance
    Thanks for help. Points will be given

    You need to set up the automatic postings:
    IMG \ Materials Management \ Valuation and Account Assignment \ Account determination \ Account determination w/o wizard \ Configure Automatic postings
    In particular you need to ensure there are settings for the Transaction Event Keys PRD (price differences) and WRX (GR/IR).  Drill through and set per:
    Valuation Grouping Code (these are set per Valuation Area which is normally Plant level and you can see the settings one step back in config.), General Modifier (if applicable) and for all possible Valuation Classes.
    This link is very good,  read the top bit for an overview then go to Transaction Event Keys (about half way down) for further info. on these.
    http://help.sap.com/saphelp_46c/helpdata/EN/12/1a39516e36d1118b3f0060b03ca329/content.htm
    Regards,
    Nick

  • PPV Purchase Price Variance - PeopleSoft

    What is the minimum that a purchase price variance will update an item?
    We have several items that are priced in the 10th and 100th of a penny for large volume items.

    Hi Satya,
    Variances are based around the standard values that are set up in the Material Master file. These standard values represent what it "should" cost to produce (or purchase) a unit of the product. Variances are calculated automatically when settlement jobs are ran in SAP
    purchase price variances are caused by a difference between the standard cost in the MM file and the actual price on the purchase order.
    The entries will b something like this
    Debit Inventory XXXXX
    Credit Accounts Payable XXXXX
    Credit Price Variance XXXXX
    Regards
    Genie

  • Standard SAP report for purchase price variance

    Hi All,
    I need to know if there is a standard SAP report that shows the purchase price variance.
    Thanks,
    Regards

    Hi Ritika,
    There is no standard report available to compare purchase order price cost and standard cost of a material.
    You can check if FBL3N helps to resolve your purpose or not. Or else you have to make a customized report with the help of ABAP'er on the informations based on the following tables.
      MBEW
            EKKO
            EKPO
            EKBE
           MKPF       
            MSEG                  
            KEKO
            KEPH,                        
            BKPF                                            
            BSEG                                          
            LFA1         
    Thanks,
    Vasanthan

  • Report to view Manufacturing variances - Purchase Price Variance

    Report to view Manufacturing variances - Purchase Price Variance, Materials Usage variance, Labor Usage variance.
      for above reports if standard tcodes are available in SAP please provide them or else explain how to develop these reports in SAP
    Spandana

    Hi
    You can use KKO0 reports...
    For that, assign your Cost Comp Str in OKN0 and choose Product Group = material group.. This is one time config
    Execute KKRV monthly after all period end setttlements are over... Then you can view KKO0 reports
    br, Ajay M

  • Purchase Price Variances

    Hi,
    I am new to SAP.  What is the best way to look at all the purchase price variances for a whole month?
    Thanks

    HI,
    Use transaction FBL3N and enter the Purchase Price variance GL Account with period for month and execute....
    Regards,
    Chintan Joshi

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