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Incorrect price distribution in PO, GR and IR.

Hi All,

I have a PO with the below details,

PO qty - 24, Net price/ unit - 75 USD, Exchange rate for RMB(currency) - 6.14100.

The GR is done for all 24 qty(24*75 = 1800 USD) and IR is also done for 24 qty(24*75 = 1800 USD).

But when I am checking the FI docs of the GR, I am getting confused by the amount posted to price variance account,

Can anybody help me understand how does this amount of 93.84 is getting calculated here. Below is the accounting tab of the material master,

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8 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 10, 2014 at 01:55 PM

    Hi Nitesh ,

    After getting the solution .....U explained clearly step by step..

    Its awesome and helpful for so many people.

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 06, 2014 at 06:37 AM

    Hi Nitesh,

    Check in Accounting-1 tab in material master record. click previous period/previous year. And check if there is any price change. check if you have done price change in MR21...If you maintain different price in PO other than price in material master record...price will go to price difference account in case of standard price S...

    Regards

    Subbu.

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  • Posted on Jan 06, 2014 at 05:36 AM

    FI docs for the material movement 101 is,

    Want to know from where does this amount 93.84 is getting calculated here ?


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  • Posted on Jan 06, 2014 at 06:02 AM

    You says PO unit net price 75 USD.But your material master price is 77.25.It seems your PO price is high .Also check material price is changed.

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  • Posted on Jan 06, 2014 at 06:10 AM

    Hi,

    At the time of GR posting, (that is on 08/01/2013), the exchange rate would be 6.1285 and hence the GR value is calculated as 1800 USD = 1800 x 6.1285 = 11031.44 RMB

    At the time of IR, (on 08/20/2013) the exchange rate would be 6.1225 and hence the IR value is calculated as 1800 USD = 1800 x 6.1225 = 11020.63 RMB

    For the GR with 1800 USD for 24 units, the unit price would be 1800 / 24 = 75 USD .

    In your case, I could see the GR is posted with 1929.84 USD instead of 1800 USD. So I could guess that the standard price at the time of GR was ( 1929.84) / 24) = 80.41 USD.

    So the price diff for one unit would be 80.41 - 75 = 5.41 USD. For 24 units, the price diff would be 24 x 5.41 = 129.84. If the delivery cost 36 USD is deducted, the diff would be 129.84 - 36 = 93.84 USD

    Hope you understand the logic.

    Regards,

    AKPT

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 06, 2014 at 06:20 AM

    Hi Nitesh,

    In addition to the above, please check if Variable order unit is active in material master, if so please check if the order unit is same as base unit of measure?

    Regards

    Sesha.

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  • Posted on Jan 08, 2014 at 12:58 PM

    Hi Nitesh,

    Check out the following knowledge based articles that go through how goods receipts calculate their valuations:

    1915844 - How the system valuates a Goods Receipt for a Purchase Order.

    1827734 - Valuation of Goods Receipt Reversals and Cancellations.

    1836227 - Valuation of WRX in case of Scheduling Agreements.

    1827732 - Valuation when GR-Based IV (EKPO-WEBRE) is set in the PO item.

    Also for Invoice Receipt valuations check out the following knowledge based article:

    1674290 - Determining Invoice posting values

    Hope this helps,

    Adam.

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  • Posted on Jan 10, 2014 at 09:57 AM

    Thanks all for your replies. The issue has been solved as i have found out the calculation logic. Let me explain. Have a look on the fin doc of GR,

    There are 3 columns - amount(For PO) , amount in LC(for currency for that particular CCode of PO) and amount LC2 (for Global/group curreny).

    for 3rd column,inventory amount(1st row) = PO qty * stand price(i.e group currency in material master)

    = 24*79.12 = 1857.60USD

    Trade GR IR account(2nd row) = PO qty * PO price

    = 24*75 = 1800 US

    Importation changes(4th row ) = 36 USD(because 25 import charges maintained in PO's conditions).

    So, price difference = 1st row - 2nd row - 3rd row

    = 1857.60-1800-36 = 62.88 USD

    Now calculate the 2nd column,

    1st row= po qty * stand price(i.e company code currency in material master)

    = 24 * 492.79 = 11,826.96 RMB

    2nd row = PO qty* PO price(USD) * exchange rate at the time of GR

    =24*75*6.12858 =11,031.44 RMB

    4th row= 2% of PO qty* PO price(USD) * exchange rate at the time of GR

    = 2% of 24*75*6.12858 =220.63 RMB

    3rd row = 11,826.96 RMB - 11,031.44 RMB - 220.63 RMB

    = 574.89 RMB

    Now coming to the first column,

    1st row = corresponding inv amount in RMB in 2nd colomn/ exchange rate at the time of GR.

    =11,826.96 / 6.12858 =1,929.84 USD

    2nd row = PO qyt* PO price

    = 24*75 = 1800 USD

    4th row = 25 importation charges = 36 USD

    So 3rd row(price difference) = 1,929.84 - 1800 - 36

    = 93.84 USD.

    now the two exchange rate are,


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