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.

Similar Messages

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.
But other two material has the automatic posting to correct account as Debit to Inventory and Credit to GR/IR.
Could you pls help me to find the reason for this.
Regards
Sujith

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

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

GR posted to Price Variance account

Hi Experts,
I have a material whose price control indicator is "V", Moving price is $1, Total Stock is zero, Price Unit is 1, Standard price is 1, Total value is zero in material master.
I have created standard PO with two line items.
Line 10 is for the quantity of 1 PC at the rate of $100 per PC.
Line 20 is for the quantity of 1 PC at the rate of $100 per PC. Additionally line 20 is account assigned Q "Proj. make-to-order". No other differences.
I have posted GR for line 10. Accounting details are Stock account $100 and GR/IR clearing account $100.
I have posted GR for line 20. Accounting details are Stock account $1, GR/IR clearing account $100 and Price variance account $99.
Any guess why the system posted line 20 in price variance account?
Thanks,
Ranjith

Hi,
I have a material whose price control indicator is "V", Moving price is $1, Total Stock is zero, Price Unit is 1, Standard price is 1, Total value is zero in material master.
its indicate that you have two material code price control V and S but situation is that both material don't have stock and price is same 1$
Now when you do MIG) for second material which has price control S and Po price is 100$
means you have price difference of 99$ ( po price -Material price)
so it will price difference account and its SAP standard
check following sap link also with example
[http://help.sap.com/saphelp_46c/helpdata/en/a8/b994b2452b11d189430000e829fbbd/content.htm]
Regards
Kailas Ugale

Invoice price Variance account in Accounts payable Impact

There is PO raised for certain amount say 20 USD and fully received and
billed for 1 QTY and zero amount.
SO when i check it is going to Invoice price variance. Client does not want to make payment for
zero amount....
Whaat is impact in this scenario if we do not make payment and amount is opened in IPV....
thanks

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.

Change the price variance account

Hi,
We have an issue here. When we do posting using MB1B, movement type 309 to transfer from 1 material A ($5.00) to another material B($4.00), there is a price variance $1.00 auto post to a GL account C, and the $5.00 and $4.00 will post to the stock account.
But currently we want to change this price variance GL account from account C to another account D.
Can anyone guide me how to do so?
Kindly please advise. Thank you.

Hi,
In OBYC for the transaction event key AUM, change the GL account.
Regards,
Ramakrishna

Unplanned Delivery Costs and Price Variance - Account Determination

Hi,
I am facing the following issue:
My goal is to automatic post the unplanned delivery costs to an account depending on valuation class.
The account should be diferent from the one used in purchase (EIN) post but both values should affect the moving price.
Can we do that?
Thank you for your cooperation
Best Regards
João Fernandes

My take is that you can have or the other, not both.
You configure how the uplanned costs are handled, a) Distributed among invoice Items or b) to a different G/L line.
Path : SPRO>MM>LIV>Incoming Invoice
If you pick, the costs goes to the stock account.
If you pick B, the cost goes to a separate account but it will not affect the item price.
The account is defined in OBYC, for transaction UPF, and it is Valuation class independent.
Hope it helps

Variances accounts - for Price variances

Hi,
I have a problem with deciding how many Price variance Accounts I should create.
There are 3 Production divisions and there are 3 types of PP orders.
Each PP order can create Finished Goods or SemiFinished Goods.
Should I create separate variance account for Finished Goods and separate variance account for Semi Finished Goods?
How can I assign these variances account (for settlement) to an order type, if one order type can do both FG and SFG. Maybe the PP order types should be divided into FG and SFG - so that there would be 6 PP order types?
What can you suggest me?
Best wishes,
Karol

Hi Karol
Create two production variance accounts for FG and SFG. These should not be created as cost elements and should have PRD PRF as account determination. You dont have to create as many variance accounts for each PP orde type
Create one more variance account - called Variances in production as cost element.
Order crated for a material and depending on the material type and valuation class assigned to material, different accounts will be hit
You assign PRD PRF for FG and SFG material valuation classes
Hope the above clarifies. Please assign points

PROCESSING INVENTORY PRICE VARIANCE

Hi everyboby.
I have this problem. I'm looking (without founding it) a standard method to shift inventory price variance account values in the inventory values. At the moment when there is a case of invoice price higher or lower than the purchase order one and consequently the inventory price variance account is used, we don't find any way to transfer that amounts into the inventory to correct the value of material.
I hope the problem is clearly descripted. Is there one that knows the procedure to transfer from inventory price variance the lower or higher value of material ?
Thanks a lot !
Marina

Cost management Documentation talks about Transfer Invoice Price Variance - following the text for documentation ...
Thanks
Yadira
Transferring Invoice Variance
You can transfer variances between purchase order price and invoice price back to inventory, from your user-defined adjustment account, usually an IPV account. This enables you to value your inventory at costs as close to actual as possible.
The transfer process picks up only invoices that have been posted to GL to ensure that the invoices are approved for payment, and that variances can be added back to inventory.
Note: Support for Project Manufacturing: If the IPV transfer is for material belonging to a specific project, only that project's inventory will be revalued and its item costs rearranged.
For any open period, you can specify the date of the IPV transfer. You can override the default date for each transaction on the Transaction Open Interface form before submitting them for update.
You can only run the transfer process for one organization at a time.
You can only specify one adjustment account when running this transfer process. You can make changes to the material account for each adjustment transaction on the Transaction Open Interface form.
Note: The Invoice Variance Transfer is listed as an average cost update in the Item Cost History or View Material Transaction inquiry.
Navigate to Transfer Invoice Variance:
1. Select Transfer Invoice Variance to Inventory Valuation.
2. Select following parameters:
Transfer Description (Optional)
Item Range
Specific Item
Category Set
Specific Category
Invoice Option
Specific Project
Adjustment Account
Invoice Cutoff Date
Automatic Update
If you choose Yes, the process automatically updates the inventory.
If you choose No, the process creates cost update open interface transactions and submits them to the Inventory Interface Manager. You can then run the Invoice Transfer to Inventory Report, review it, and submit transactions using the Inventory Transaction Open Interface manager. See: Viewing and Updating Transaction Open Interface Activity.
3. Choose OK.
4. Choose Submit.

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

Purchase price variance program

Good after,
Am quiet new in MM....I would t have a program that can interogate a price variance account, find an amount that exceeds a user inpu threshold amount, then send via email document details, PO details, amount to the buyer
Regards,
Gigi

Hello Gigi,
Did you find a solution? If so, please forward all details.
Thank you,
Rivaaj

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

Price Variance Moving Average

Can anyone explain to me the purpose of the GL account " Price Variance Moving Average " and how it works. What transaction triggers it and how it is calculated.
I am running 2007A with PL38
Thanks,
Peter To

Hi
Price variance account :
Used in purchasing transactions only. For certain scenarios, price differences between the base and target documents are recorded in this account.
Hope this helps to troubleshoot and figure out .
Thank you
Bishal
Edited by: Bishal Adhikari on Feb 18, 2009 4:51 PM

Price variance implication

1. A GRPO is created for 10 units at $1 each (total in stock will be 10)
2. 5 units are then sold via an AR invoice (reducing stock to 5 units at $1) on an AR invoice
3. The A/P invoice is then created for 10 units at $2 each. $5 goes to the price variance account - becuase the AR invoice for 5 units has been procesed.
What happens to....
1. The average moving price for the item?
2. What happens to the inventory value?
3. What happens to the price variance account?

Hello Lisa,
1. The average moving price for the item?
The moving average price of the item will be $2 reflecting the A/P Invoice price
2. What happens to the inventory value?
The Inventory value would be 5 x $2 = $10
3. What happens to the price variance account?
Since you already sold 5 units whose COGS was only $5 the difference between the new Cost for 5 units is $5 and the same is posted to the variance account. The amont in the variance account is treated like a cost and is deducted in your P&L
Suda

Price Variance at the time of MIGO

Hi All,
we have scenario where at the time of GR Mvt Type 101 system has posted below accounting entry
Stock Account Dr 1,816.00
GR\IR Account Cr 1,816.00
Now at the same time user has returned the goods Mvt Type 102
Stock Account Cr 1,816.00-
GR\IR Account Dr 1,091.52
Price Variance Dr 724.48
Now we are not able to understand why system is posting to Price Variance Account any expert advise.
Thanks!!!
Regards,
Vivek Srivastava

Hi,
This might be because of the price change in PO.
If you change the PO net price, while reversing the document sytem get net price from PO.Check once price history.

Wrongly picking price variance account

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