Value calculation

[former_member355302]

Dear expert

I am facing one problem in item costing

"Item Master Data" is batch wise manage and fifo valuation method.

we created a GRN, after that may be goods return or inventory transfer.

But at the time of goods return value goes to material gain account and raw material value is different from GRN raw material value

GRN Entry

GINR  :-    credit   531181

Materisl:-    Debit  531181

Goods Return entry

GINR  :-                           credit   -531181

Materisl:-                         Debit  -504840.803

Price Difference Account:- Debit  -26340.197

Why value is update price difference account and how we can resolve that issue.

Please try to provide me solution as soon as possible

[Former Member · Accepted solution]

Hi,

System perform inventory valuation according to System Date. As you are using FIFO as valuation method, system will return oldest available stock according to system date & if variance exist,it will be posted in respective price difference Account.

Regards,

Raviraj .

[former_member355302]

but my client don't want to value in price difference account.

how we can do.

[Former Member]

Check and change the G/L determination then.

[Former Member]

Hi,

Since you are using FIFO, your item cost for return will find the oldest cost first. That is usually not the same as your GRN cost. The variance will be posted based on your G/L determination.

Thanks,

Gordon