Re: [sap-log-mm] Moving average price as price control in material master: Erroneous entries pass at the time of Invoice verification
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 | Posted by Deepak K. Mehta on May 9 at 2:05 PM |  Mark as helpful |
Hi Sandagomi,
As per my undersatnding, there are the following scenarios possible:
1) At the time of IR, batch stock quantity is more than IR quantity:
The entire 100 USD will be debited to stock account (assuming moveing average price). Otherwise, price difference will be debited in all cases.
2) At the time of IR, batch stock quantity is less than IR quantity:
The 100 USD will be debited pro-rata to stock account and price difference account based on stock coverage. In your case, if stock is 75 units and IR is for 100 units, 75 % will be borne by stock and 25 % by price difference account.
Does anything different happen in the scenarios tested by you?
Regards,
Deepak
From: ha_tran via sap-log-mm <sap-log-mm@Groups.ITtoolbox.com>
To: Deepak K. Mehta <dkmehta_blr@yahoo.com>
Sent: Sun, May 9, 2010 7:18:49 AM
Subject: RE:[sap-log-mm] Moving average price as price control in material master: Erroneous entries pass at the time of Invoice verification
Posted by ha_tran (Senior SAP Supply Chain Business Analyst)
on May 8 at 9:50 PM Mark as helpful
Hi Sandagomi,
It is of the standard functionality of SAP that when the IR is posted after GR and if there is any price variance between PO/GR and IR, then SAP will use the following logic to determine how the price variance shall be allocated -
1) If the invoiced quantity is less than the current stock quantity at the time of invoice posting, then all the price difference will be allocated to the price difference account and this is what you have experienced for some POs;
2) If the invoice quantity is in excess of the current stock quantity at the time of invoice posting, then the price difference will be proportionally allocated to the price difference account as well as consumption account.
Cheers,
HT
---------------Original Message---------------
From: Sandagomi Ranasinghe
Sent: Saturday, May 08, 2010 9:57 AM
Subject: Moving average price as price control in material master: Erroneous entries pass at the time of Invoice verification
> Dear All,
> Recently we did a price control change from standard price to moving average price for one of our clients and scenario testing was done. We came across the following issue at the IR point and this error occur time to time ( not for all POs )Following steps were followed
>
> Scenario
>
> 1. Create a PO for 1000 Kg of material A @ 1USD
> 2.GR the purchase order- at this point correct values are passed to stock account
> 3.consumed 250 Kg from the above material and from the same batch- correct values are passed to the accounts correctly
> 4.invoice verification is done for the above PO with a price variance of 100 USD. The error occur at this time ( some times )
>
> Correct entry:
> Dr GR/IR account 1000
> Dr Stock account 75 (Price variance is charged proportionately charge to the balance stock)
> Dr price variance 25 (Price variance is charged proportionately on the consumed stock)
> Cr Vendor 1100
>
> But sometimes the value does not pass accurately for the same PO. Accounting entries are as follows.
> ( this is same scenario with new purchase order with different master records )
>
> Dr GR/IR account 1000
> Dr Stock account 100 (Total price variance is charged to the stock account and its incorrect this should be only 75 as explain above )
> Cr Vendor 1100
>
> This error occurs sometimes even though the vendor master record and purchase orders and same as the time of pass correct entries . All these time GR based IR tick activated has activated in PO as well as vendor master .
>
> Appreciate your advice.
> Tks
> Sandagomi
__.____._ As per my undersatnding, there are the following scenarios possible:
1) At the time of IR, batch stock quantity is more than IR quantity:
The entire 100 USD will be debited to stock account (assuming moveing average price). Otherwise, price difference will be debited in all cases.
2) At the time of IR, batch stock quantity is less than IR quantity:
The 100 USD will be debited pro-rata to stock account and price difference account based on stock coverage. In your case, if stock is 75 units and IR is for 100 units, 75 % will be borne by stock and 25 % by price difference account.
Does anything different happen in the scenarios tested by you?
Regards,
Deepak
From: ha_tran via sap-log-mm <sap-log-mm@Groups.ITtoolbox.com>
To: Deepak K. Mehta <dkmehta_blr@yahoo.com>
Sent: Sun, May 9, 2010 7:18:49 AM
Subject: RE:[sap-log-mm] Moving average price as price control in material master: Erroneous entries pass at the time of Invoice verification
Posted by ha_tran (Senior SAP Supply Chain Business Analyst)
on May 8 at 9:50 PM Mark as helpful
Hi Sandagomi,
It is of the standard functionality of SAP that when the IR is posted after GR and if there is any price variance between PO/GR and IR, then SAP will use the following logic to determine how the price variance shall be allocated -
1) If the invoiced quantity is less than the current stock quantity at the time of invoice posting, then all the price difference will be allocated to the price difference account and this is what you have experienced for some POs;
2) If the invoice quantity is in excess of the current stock quantity at the time of invoice posting, then the price difference will be proportionally allocated to the price difference account as well as consumption account.
Cheers,
HT
---------------Original Message---------------
From: Sandagomi Ranasinghe
Sent: Saturday, May 08, 2010 9:57 AM
Subject: Moving average price as price control in material master: Erroneous entries pass at the time of Invoice verification
> Dear All,
> Recently we did a price control change from standard price to moving average price for one of our clients and scenario testing was done. We came across the following issue at the IR point and this error occur time to time ( not for all POs )Following steps were followed
>
> Scenario
>
> 1. Create a PO for 1000 Kg of material A @ 1USD
> 2.GR the purchase order- at this point correct values are passed to stock account
> 3.consumed 250 Kg from the above material and from the same batch- correct values are passed to the accounts correctly
> 4.invoice verification is done for the above PO with a price variance of 100 USD. The error occur at this time ( some times )
>
> Correct entry:
> Dr GR/IR account 1000
> Dr Stock account 75 (Price variance is charged proportionately charge to the balance stock)
> Dr price variance 25 (Price variance is charged proportionately on the consumed stock)
> Cr Vendor 1100
>
> But sometimes the value does not pass accurately for the same PO. Accounting entries are as follows.
> ( this is same scenario with new purchase order with different master records )
>
> Dr GR/IR account 1000
> Dr Stock account 100 (Total price variance is charged to the stock account and its incorrect this should be only 75 as explain above )
> Cr Vendor 1100
>
> This error occurs sometimes even though the vendor master record and purchase orders and same as the time of pass correct entries . All these time GR based IR tick activated has activated in PO as well as vendor master .
>
> Appreciate your advice.
> Tks
> Sandagomi
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Deepak K. MehtaSAP Logistics Material Management Enthusiast
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