Purchase variance account defined OBYC

When there is difference between PO amount and Invoice I know that the delta is posted to PPV account. But in our case when it is posting to a PPV account, it is also psoted to a profit center. and when it is posting to a dummy profit center, The PO number is getting updated in the line item details.
Advise how can I change the configuration for diverting the automatic postings.
Thanks in Advance,
YGB

Hello,
Please maintain OKB9 settings give your default account assignment.
Hope you must have maintained 3KEH settings.
Regards,
Ravi

Similar Messages

GRPO not posting to Purchase Variance Account

SBO Version: 8.82 PL05
Forum,
I have the following scenario:
The Goods Return was not created from a Goods Receipt PO, however its value was €249.83 and this is the value shown on
the open item list.
The journal posting relating to this return details a value of €260.77. Thus we have an imbalance between the open item list
and our general ledger.
The €260.77 represents the standard cost of the returns and this is the value we would have expected to have been credited to stock. €249.83 should have been debited to Accruals GRNI Stock and the difference should have been written off to Purchase Price Variance and historically we can demonstrate that this is what has happened.
Would anyone be able to assist?
Orla

Hi Orla,
If the Goods Return is independent from GRPO, do they share the same posting date?
Thanks,
Gordon

Purchase Variance Tracking

Hi Everyone,
My customer's accountant is looking for a report that would track the Purchase Variance Account.
For example, our customer is using Moving Average as their Valuation Method. They may receive items using A/P Goods Receipt PO's and may ship it out on a customer delivery before receiving the A/P Invoice in the mail and entering it into SAP. When this occurs, any price difference is booked to the Purchase Variance Account instead of the Inventory Account. This makes sense as you do not want to adjust the value of your inventory as you no longer actually have it in inventory.
I also know that you may run a general ledger report by the purchase variance account and see a list of all of the invoices, production orders, etc. that have hit this account. However, my customer's accountant would like more details. He would like to know the specific item that is causing the variance. Some of their invoices have more than 100 lines, so to do this manually is challenging.
Is there anyway to create this report? Or is there already a standard one that I have not found?
I appreciate your help.
Amanda

Hi again,
Last entry I think.
Like I said earlier, the where statement is not correct when it is pasted in here because of the site.
SELECT
case
when cast (T0.TransType as nvarchar (16)) = '18' then 'AP Invoice'
when cast (T0.TransType as nvarchar (16)) = '21' then 'Goods Return'
when cast (T0.TransType as nvarchar (16)) = '20' then 'Goods Receipt PO'
when cast (T0.TransType as nvarchar (16)) = '19' then 'AP Credit Note'
else cast (T0.TransType as nvarchar (16))
end as 'Document type',
T0.BASE_REF as 'Document Number',
T0.ItemCode,
T0.Warehouse,
T0.InQty,
T0.OutQty,
case
when T0.PriceDifAc = '_SYS00000000151' then '40110000001'
when T0.PriceDifAc = '_SYS00000000405' then '40110011101'
when T0.PriceDifAc = '_SYS00000000406' then '40110011201'
when T0.PriceDifAc = '_SYS00000000407' then '40110022001'
when T0.PriceDifAc = '_SYS00000000408' then '40110090001'
when T0.PriceDifAc = '_SYS00000000409' then '40110091001'
when T0.PriceDifAc = '_SYS00000000410' then '40110091101'
when T0.PriceDifAc = '_SYS00000000411' then '40110091201'
when T0.PriceDifAc = '_SYS00000000412' then '40110092001'
when T0.PriceDifAc = '_SYS00000000687' then '40110011001'
when T0.PriceDifAc = '_SYS00000000728' then '40110000002'
when T0.PriceDifAc = '_SYS00000000729' then '40110011002'
when T0.PriceDifAc = '_SYS00000000730' then '40110011102'
when T0.PriceDifAc = '_SYS00000000731' then '40110011202'
when T0.PriceDifAc = '_SYS00000000732' then '40110022002'
when T0.PriceDifAc = '_SYS00000000733' then '40110090002'
when T0.PriceDifAc = '_SYS00000000734' then '40110091002'
when T0.PriceDifAc = '_SYS00000000735' then '40110091102'
when T0.PriceDifAc = '_SYS00000000736' then '40110091202'
when T0.PriceDifAc = '_SYS00000000737' then '40110092002'
else T0.PriceDifAc
end as 'Price Difference Account',
T0.PriceDiff,
case
when T0.[VarianceAc] = '_SYS00000000151' then '40110000001'
when T0.[VarianceAc] = '_SYS00000000405' then '40110011101'
when T0.[VarianceAc] = '_SYS00000000406' then '40110011201'
when T0.[VarianceAc] = '_SYS00000000407' then '40110022001'
when T0.[VarianceAc] = '_SYS00000000408' then '40110090001'
when T0.[VarianceAc] = '_SYS00000000409' then '40110091001'
when T0.[VarianceAc] = '_SYS00000000410' then '40110091101'
when T0.[VarianceAc] = '_SYS00000000411' then '40110091201'
when T0.[VarianceAc] = '_SYS00000000412' then '40110092001'
when T0.[VarianceAc] = '_SYS00000000687' then '40110011001'
when T0.[VarianceAc] = '_SYS00000000728' then '40110000002'
when T0.[VarianceAc] = '_SYS00000000729' then '40110011002'
when T0.[VarianceAc] = '_SYS00000000730' then '40110011102'
when T0.[VarianceAc] = '_SYS00000000731' then '40110011202'
when T0.[VarianceAc] = '_SYS00000000732' then '40110022002'
when T0.[VarianceAc] = '_SYS00000000733' then '40110090002'
when T0.[VarianceAc] = '_SYS00000000734' then '40110091002'
when T0.[VarianceAc] = '_SYS00000000735' then '40110091102'
when T0.[VarianceAc] = '_SYS00000000736' then '40110091202'
when T0.[VarianceAc] = '_SYS00000000737' then '40110092002'
else T0.[VarianceAc]
end as 'Variance Account',
T0.[VarVal],
case
when T0.[NegStckAct] = '_SYS00000000151' then '40110000001'
when T0.[NegStckAct] = '_SYS00000000405' then '40110011101'
when T0.[NegStckAct] = '_SYS00000000406' then '40110011201'
when T0.[NegStckAct] = '_SYS00000000407' then '40110022001'
when T0.[NegStckAct] = '_SYS00000000408' then '40110090001'
when T0.[NegStckAct] = '_SYS00000000409' then '40110091001'
when T0.[NegStckAct] = '_SYS00000000410' then '40110091101'
when T0.[NegStckAct] = '_SYS00000000411' then '40110091201'
when T0.[NegStckAct] = '_SYS00000000412' then '40110092001'
when T0.[NegStckAct] = '_SYS00000000687' then '40110011001'
when T0.[NegStckAct] = '_SYS00000000728' then '40110000002'
when T0.[NegStckAct] = '_SYS00000000729' then '40110011002'
when T0.[NegStckAct] = '_SYS00000000730' then '40110011102'
when T0.[NegStckAct] = '_SYS00000000731' then '40110011202'
when T0.[NegStckAct] = '_SYS00000000732' then '40110022002'
when T0.[NegStckAct] = '_SYS00000000733' then '40110090002'
when T0.[NegStckAct] = '_SYS00000000734' then '40110091002'
when T0.[NegStckAct] = '_SYS00000000735' then '40110091102'
when T0.[NegStckAct] = '_SYS00000000736' then '40110091202'
when T0.[NegStckAct] = '_SYS00000000737' then '40110092002'
else T0.[NegStckAct]
end as 'Negative Stock Account',
T0.[NegInvAdjs],
sum(T0.PriceDiff + T0.[VarVal] + T0.[NegInvAdjs]) as 'Total Expense not on COGS'
From OINM T0
WHERE T0.PriceDiff + T0.[VarVal] + T0.[NegInvAdjs] <> 0
GROUP BY
T0.BASE_REF,
T0.TransType,
T0.ItemCode,
T0.Warehouse,
T0.InQty,
T0.OutQty,
T0.PriceDifAc,
T0.PriceDiff,
T0.[VarianceAc],
T0.[NegStckAct],
T0.[VarVal],
T0.[NegInvAdjs]
this is quite a clumpsy query because it is not really possible to link OACT and OINM when looking for more than 1 account. the structure is very repetitive and should be simple to use for other purposes.
That's it.
Jesper

Purchase price variance account

Hi,
I have a purchase order created in 2007 and movements done in 2007.
I needed to reverse the GR, i created additional line items on the purchase order with returns flag. When i did GR it has hit a price varinace account.
If i do 102 against 101 does it hit a price variance account if the material value in MBEW table has changed.
Let me know your inputs here.
Thanks,
Regards
Raghavendra

Hi,
If there is a change in the MBEW table for the said item, then you will hit the price variance account, even if you do the reversal using 102.
Regards
Merwyn

Is variance account needed for moving average item valuation?

Hi All,
My client is currently using SAPB1 ver.2005 and upgrade from ver.2004.
After upgrade, in ver.2005, they want to add A/P credit memo that is copied from A/P invoice they have created earlier in ver.2004.
When they tried to do that, system prompt an error message saying "Inventory account is not defined, 'item code' (message 173-77).
So I defined a variance account in G/L account determination, under purchase tab.
G/L Determination -> Purchase Tab -> Expense and Inventory Account.
Therefore, what is the cause of this as they never encounter this in ver.2004. They didn't change anything in the G/L determination as well.
Please help..
Regards,
Kevin

Hi Wilma,
Yes, i have tried both scenarios, the JE i've got are the same with what you have got. But could you explain for scenario 2? Why when you do GRN is MYR 110 and in A/P Credit Memo is MYR 100, But in JE is still
Dr Vendor MYR100
Cr Stock MYR100
Dr Purchase Offset MYR100
Cr Purchase Return MYR100
Shouldn't there be a difference capture of MYR10 to be debited to variance account?
Ok, Can you try this scenario
GRN - A001 MYR110 x 100 units
A/P Credit Memo MYR100 x 1 unit
The JE of the A/P Credit Memo is like the above.
After that, you do another A/P Credit Memo,
A/P Credit Memo MYR100 x 99 units,
My JE
Dr Vendor MYR 9900
Dr Price Difference MYR 1000
Cr Stock MYR 10900
Is this what you get? If yes, could you explain why?
Regards,
Kevin

Exchange Rate Variance Account

We are having a problemwith an invoice in payables module. It is crediting the exchange rate variance account in invoice accounting but is not selecting the right gl code due to which we are not able to generate accounting for this invoice. Can anybody tell me where do we define Exchange Rate Variance account?
Note: If your answer is PO Price Variance account in Financial Options then we have already checked it and it has the right gl code so there definitely is some other place where the aforementioned code is defined.
I can also provide screen shots of the invoice or the distribution of invoice.

Hi Nehmat,
this is an intended behaviour ...
Your purchase order is in Foreign Currency ..
Your Invoice matched to Purchase order is in Foreign Currency ...
Difference between the PO and INV exchange rate has caused Exchange rate variance ..
The entered currency in the above case is Foreign currency therefore entered value for ERV line will be zero ... whereas the accounted line would have the computation for ERV done in functional currency....hence ERV line is acceptable for this case.
Regards,
Ivruksha

PUrchase Variance

Hi,
i have a problem... i have check it, but until know not found the solution..
I have a PO and that PO is already MIGO and MIRO. for Example :
in PO
item A      qty 190     price : 1.3020 USD
in purchase order history
MIGO   -
> qty : 190       Amount : 247.3800
MIRO   -
> qty : 190       Amount : 247.3800
but when i check in the FI Document of MIGO > in the Accounting Document, when i check it, there is a purchase variance with data like below :
item Acc Type    PK              account   cost center          Desc                            Amount            Curr         Profit Center
*19        M                 89          151000                            Inv of Raw Material     252.4339             USD          *
20        S                 96          238000                            Gd Rcvd/In Rcvd             247.3800-     USD
21        S                 96          598000     1930               Purchase Price Var     5.0539-             USD          1930
How come Inv of Raw Material is 252.4339 ??, because in my Purchase Order, price of its material is 1.3020 and qty is 190, so total is 247.3800.
Any idea how to check it and solve this problem ???
Thanks,
Tok
Edited by: toktok on Mar 31, 2011 4:12 PM

Hi KV
Purchase Price Variance arise for materials with Standard Price Control i.e. S. Suggested solution to your problem is simply change the Price Control to "V".
But be careful, before doing this in MM, please check with your FI Guys for financial impact.
Rgrds
Riz

MIRO - hitting to purchase varience account

Hi,
i am trying to post Invoice, when i am giving PO in invoice screen entries are coming correct.
but when i simulate the invoice lot of variance accounts are coming with different values.
please advice why purchase variance is coming while simulate invoice.
Thanks
Mahesh

hi,
Please find the entries coming while simulating Invoice.
10     M     65410                                                            3,266.00      INR
11     M     65410                                                            0.00      INR
12     S     705000     Direct Purchase Variance     0.00      INR
13     S     705000     Direct Purchase Variance     3,092.79-     INR
14     S     983710     Realized Transaction (G)/L Sale?purch Frgn Currcy     173.21-     INR
15     M     65410                                                            3,266.00      INR
16     M     65410                                                            0.00      INR
17     S     705000     Direct Purchase Variance     0.00      INR
18     S     705000     Direct Purchase Variance     3,092.79-     INR
19     S     983710     Realized Transaction (G)/L Sale?purch Frgn Currcy     173.21-     INR
1     K     335010     OC COMPOSITE MATERIALS, LLC / TOLEDO OH 43659     3,424.00-     USD                              VZ
2     S     66410     Vendor Payables Clearing Account SAP Control Acct.     1,442.68      USD     4570047871     10     VZ
3     S     705000     Direct Purchase Variance     0.00      USD     4570047871     10     VZ
4     S     705000     Direct Purchase Variance     269.32      USD     4570047871     10     VZ
5     S     983710     Realized Transaction (G)/L Sale?purch Frgn Currcy     0.00      USD     4570047871     10     VZ
6     S     66410     Vendor Payables Clearing Account SAP Control Acct.     1,442.68      USD     4570047871     20     VZ
7     S     705000     Direct Purchase Variance     0.00      USD     4570047871     20     VZ
8     S     705000     Direct Purchase Variance     269.32      USD     4570047871     20     VZ
9     S     983710     Realized Transaction (G)/L Sale?purch Frgn Currcy     0.00      USD     4570047871     20     VZ
their are many entries going for veriance account. i need to know why it is going for variance. the amount which i need to pay to the vendor is only 3424 USD.

Err: No WIP Variance Account exists for item, when closing Production Order

I'm sure the 'WIP Inventory Variance Account' property had been set for the Warehouse of the Production Order.
But I can not update this Production Order from 'Release' to 'Closed' status.
Pls help me out.
thanks.

Hi,
Can you confirm whether the,for the item involved, has checkbox 'Manage Inventory by Warehouse' marked or not under the Inventory tab of the item master data?
Check in COPY of the database, by defining the WIP Variance Account for all the Warehouses for the Item involved and check whether you can not set the status of the Production Order to Close.
Kind Regards,
Jitin
SAP Business One Forum Team

"Price difference" being journaled to "Variance Account"

Per the online help in B1 8.8, the "Price Difference Account" in the G/L Account Determination: Inventory Tab window "price differences between the base and target documents are recorded in this account."
When I create a Purchase Order for an item, then copy to an A/P Invoice and change the price, the difference between the PO price and the Invoice price is posted to the "Variance Account", not the "Price Difference Account", per the documentation. I have confirmed that the description of the "Variance Account" function is happening correctly, that is, when the price differs from the standard cost the difference is posted to the "Variance Account".
Can someone help with this?

Gordon,
I only put the "Variance Account" here for reference. My issue relates to the "Price Difference Account". Rather than a difference in price from Purchasing documents going to the "Price Difference Account", it is going to the "Variance Account".
This should be what is commonly called "Invoice Price Variance". The "Variance Account" is used for what is commonly called the "Purchase Price Variance". It appears in 8.8 that both variances are going to the same account even though documentation implies differently.
The following exerpt from the online documentation is not how the system is working:
"Price Difference Account
Used in purchasing transactions only. For certain scenarios, price differences between the base and target documents are recorded in this account."
To recreate this scenario (Invoice Price Variance),
1) Put two different accounts in "Administration | Setup | Financials | G/L Account Determination" on the inventory tab under "Variance Account" and "Price Difference Account."
2) Enter a Purchase Order for a Standard Cost Item enter a Qty of 1 and Price of $1,000.
3) Copy the Purchase Order to an Invoice and change the price to $900.
The journal entry that is created includes a $100 entry to the "Variance Account" set up above.
The alternate variance (Purchase Price Variance) can be recreated as follows:
1) Set the standard cost of an item to $1,000
2) Enter a Purchase Order for the Standard Cost Item enter a Qty of 1 and Price of $900.
3) Copy the Purchase Order to an Invoice and do not change the price.
The journal entry that is created includes a $100 entry to the "Variance Account" again.
These two scenarios should post to different accounts as described in the online help under G/L Account Determination.

Production order variance and purchase variance go to one business area.

Hi Experts,
I have a issue while Purchase order we have ordered 3000 qty and while goods receipt we posted 300000 qty and same was issed for prodction order instead of 3000 and got variance. Then afterward purchase order qty was rectified with correct qty then purchase variance happed. The production order variance is getting offsetting by purchase order variance and no effect on gross profit.
Now my question is production variance is going one business area and purchase variance is going another business area. It should not be like that. Both should be showed only one business area. Please provide solution.
Thanks in advance.
Balu

Dear Balu,
You can try OKB9 wherein you need to select the indicator 'BAlrn' against the cost elements of Purchase price difference account. Then select the line item and click the folder 'Detail for business area/valuation area' and input your business area. Thereby you can capture this variance in same business area, even if any other business area is entered or derived differently.
Further, if your production variance account is also a cost element, you can direct the postings to the same business area, we can do the same as explained above. If not, we have to think of another configuration or work around. Pl let me know.
Trust this helps much!
Regards,
Ashok SINGH

Account determination - OBYC

Hi all,
In automatic account determination (OBYC), is it possible to define a separate GL account by Movement type's reason codes?
For eg:
Movement type 701 + reason code 0001 should post to 11111111
Movement type 701 + reason code 0002 should post to 22222222
Movement type 701 + reason code 0003 should post to 33333333

Not available in standard system.....
Regards,
Chintan Joshi

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.

Purchase Balance Account

Hi All,
What is the precise use of "Purchase Balance Account" in the Warehouse Setup > Accounting tab.
Please note that we are using SBO 8.8 PL12 and using Purchasing accounts posting system.
Thks & Rgds
Aditya...

Hello
This account is credited / debited to reflect any variance between the purchase account and cost of goods puchased account. The purchase balance account postings are alway equal to and opposit of variance account postings.
(how to Set Up and Manage a Perpetual Inventory System , release 8.8., located in How to guides).
Regards
János

LCM Variance Account

Hi,
What is the use of LCM Variance Account? What is the intended functionality of that?Where will this account get hit? Is this the account used for to see variance between the estimated and actuals amount? This account was defined at organization parameters in other accounts tab
Regards,
Sri
Edited by: user12116236 on May 14, 2012 4:01 AM

Hi;
I suggest to check below doc for your questions:
http://docs.oracle.com/cd/E18727_01/doc.121/e13655/T388436T544873.htm
Regard
Helios

Purchase variance account defined OBYC

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