Understanding A/P credit memo

Question

Hi everyone,
I have some transactions as the following:
1. Goods Receipt PO No. 1
ItemCode_______________________ItemCost_______Quantity
M001G0A001NAC0030020_________1,235,205.44_______300
M001G0A001NAC0055020_________1,680,397.84_______400
M001G0A001R100055020_________1,853,712.42_______200
Account entry:
Account _______________________ Debit______________ Credit
StockAccount____________________1,413,463,252.00
Goods Clearing Acc  _______________________________  1,413,463,252.00
That's OK
2. Landed cost for above GRPO
ItemCode_______________________ItemCost_______Amount
M001G0A001NAC0055020___________1,766,804.75_______2,592,207.00
M001G0A001R100055020____________ 1,949,031.26_______19,063,768.00
That's OK
3. A/P Invoice based on GRPO No. 1
4. Goods receipt PO No. 2
ItemCode_______________________ItemCost_______Quantity
M001G0A001NAC0030020__________1,177,765.20_______300
M001G0A001NAC0055020__________1,602,255.00_______400
M001G0A001R100055020__________1,767,510.00_______200
Account entry:
Account _______________________ Debit______________ Credit
StockAccount ___________________1,347,733,560.00
Goods Clearing Acc _________________________________ 1,347,733,560.00
That's OK
5. A/P Credit Memo based on A/P Invoice
ItemCode_______________________ItemCost_______Quantity
M001G0A001NAC0030020____________1,177,765.20_____ 300     
M001G0A001NAC0055020____________ 1,686,878.36______ 400     
M001G0A001R100055020_____________ 1,949,031.26______ 200
Account entry:
Account _______________________ Debit______________ Credit
AR  _______________________________________________  -1,413,463,252.00
Stock Account___________________  -1,345,206,156.00
Price Different Account _____________ -68,257,096.00
I dont understand which is fomular calculation to have  -1,345,206,156.00 and -68,257,096.00
and Why does item cost change?
Because the problem is -1,345,206,156.00 comes to G/L report of Stock Account
But stock amount comes to Inventory Audit report is  1,177,765.20300 + 1,686,878.36400 + 1,949,031.26*200 = 1,417,887,155.00
Then if I generate G/L report for stock account
and I generate inventory audit report for all warehouse in the same period, the total stock account is diffenrent
Please help me explain!
Thank you so much.
Edited by: Fat4FancyFace on Oct 21, 2010 7:20 AM

Answer 1

It is because the item cost in the A/P invoice is different with the item cost in the A/P credit memo. it is normal for moving average valuation method system.
Check the solution from this note [1227453|https://websmp230.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/smb_searchnotes/display.htm?note_langu=E&note_numm=1227453]:
Price Difference in A/P Credit Memo and A/P Goods Return.
Symptom
In what scenario is the 'Price Difference' account used when posting an independent A/P Credit Memo or A/P Goods Return?
Other terms
Price difference, return, goods, stock, inventory, A/P, credit memo, difference, variance, SAP Business One
Reason and Prerequisites
Consulting
Solution
The 'Price Difference' account is used when the 'In Stock' quantity of an item is reduced to zero. This account holds the difference between the transaction amount (A/P Credit Memo or A/P Goods Return) and the item's 'Cumulative Value' in the Item table. For example:
Item A
Quantity - 10 Units
Average Cost - GBP 5.00
Cumulative Value - GBP 50.00
If an A/P Credit Memo or A/P Goods Return is posted for the entire 10 units with the unit cost of GBP 4.50. The GBP .50 difference will be posted to the 'Price Difference' account.
Dr. Supplier or Allocation Account, GBP 45.00
Dr. Price Difference, GBP 5.00
Cr. Stock, GBP 50.00
The GBP 5.00 is also recorded to set the 'Cumulative Value' to zero.
JimM