Skip to Content
author's profile photo Former Member
Former Member

Process order confirmation and reversal showing different amount

Hi Sap Expertise,

I have came across to such scenario for Process Order Confirmation and reversal.

1. Order Confirmation - Mov. Type 101

Inventory --- Dr 23,189.15

COGM ------- Cr 23,189.15

2. Order Confirmation reversal - Mov. Type 102

Inventory --- Cr 23,189.15

COGM ------- Dr 40,758.42

Prod. Var.--- Cr 17,569.27

I want to know in which sense SAP is calculating Prod Variance?

What are the possible reasons to clarify whether posted amounts are right or wrong.

Thanks in Advance....

Regards

Sagar

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

4 Answers

  • Best Answer
    Posted on Dec 04, 2014 at 04:10 AM

    Hi

    At the time of GR mov 101 Inventory was received at standard price maintained in MMaster if the price control is maintained as "S" and same value has gone to your COGM

    Now when you reversing the entry some other expenses has booked in your order and COGM cost has gone up...so when you reversing the whole GR qty the diff amount of COGM is posted to PRD a/c

    If you give the details of your process and mat status like Price control etc ..it can be explained further.. But I think this will put some light on your query

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Dec 04, 2014 at 05:44 AM

    Hi Sagar,

    First check the price changes made for the material in MM03. There might be price changed after you did 101 movement type. Due to this it is posting to price diff.at reversing.

    Regards,

    Mukthar

    Add a comment
    10|10000 characters needed characters exceeded

    • Hi Sagar,

      I have checked the screen shot and observed that the transactions which has posted in EUR currency there total balance is 0. If we check the balance in reporting currency there might have difference. May I know what is your reporting currency? There might be exchange rate difference between 101 & 102, due to this it has posted in price variance.

      Please check and let me know.

      Regards,

      Mukthar

  • author's profile photo Former Member
    Former Member
    Posted on Dec 04, 2014 at 10:54 AM

    Hello Sagar,

    Kindly check, whether any unplanned material is issued to production order after confirmation and before reversal of production order.

    If yes, then unplanned value will be shown as a PRD difference.

    Regards,

    Vinayak

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Dec 04, 2014 at 06:13 PM

    HI Sagar,

    I tried to explain with my own example in below

    you may confirmed the production order with 100 rs in previous month

    Dr Stock a/c 100

    Cr COGM a/c 100

    And fresh standard cost has released in MM for the first day of current month say 120.

    when you reverse the confirmation in the current month the system will look for the current standard price.

    Dr COGM a/c 120

    Cr Stock a/c 100

    Cr Price Diff a/c 20

    Regards,

    Ravan

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.