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Former Member

Reversal of Material document different values in GRIR

Hi All,

I have some strange issue for which I need you assistance.

I have PO for which i do a Goods Receipts, account entry is (I have taken example values)

Posted on 15th of Nov

Inventroy RM A/c Dr 1000

GRIR A/c Cr 950

Price Variance A/c Cr 50

On 30th Nov , the material document was reversed, then the accounting entry was as below

Reversal was posted on 30th Nov:

Inventroy RM A/c Dr 1000

GRIR A/c Cr 925

Price Variance A/c Cr 75

You can see that the GRIR is getting 25 less and price variance is getting 75. Can anyone please explain this strange behaviour?

Material price was maintained in Moving avg price in Nov and the it was changed to Standard price in Dec. if there is a change in the material price, the GRIR should get the same amount.

Appreciate your inputs.

Regards, MG

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 14, 2014 at 01:09 PM

    Hi Mallikarjuna,

    This can easily happen if the purchase order history for this item contains several goods receipts and/or invoices posted at different prices.

    I have just recreated a similar example:

    - PO item was for 42 units of a material with a unit price of $105.

    - Goods receipt for 12 units was posted. SAP automatically calculated GR/IR = stock = $1260.

    - Invoice was posted for 30 units and a total net value of $9999 (i.e., unit price of $333.30)

    - Additional goods receipts for 18 units was posted. As there was an open invoice amount (overbilling), SAP automatically calculated GR/IR = stock = $5999.40 (i.e., with unit price $333.30 from the invoice).

    - The first goods receipt for 12 units was reversed (cancellation in MIGO). SAP now debits GR/IR and credits stock with $3999.60, i.e. $333.30 per unit - because the invoice "rules" as long as there is a quantity overbill.

    Do you have a similar case in your system - i.e., a complex PO history with goods receipts and invoices posted at different unit prices?

    A similar thing can happen if you change the price in your order (trans. ME22N) after you made a partial goods receipt. I have also tried a similar example:

    - PO item was for 60 units of a material with a unit price of $105

    - Goods receipt for 24 units was posted and automatically valuated at $2520

    - PO item was changed - now the unit price of the material is $567

    - Another goods receipt for 24 units was posted and this time valuated at $13608

    - The first goods receipt was reversed in MIGO. The debit to GR/IR and credit to stock was $8064 - taking the average of the two purchase prices.

    This is how MIGO reversals work. Does it answer your question?

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