Price Difference posting in Inventory through ML Settlement

[former_member218048]

Dears

When we post the invoice, planned delivery costs are posted to 'Price difference' accounts as the raw material stock is already consumer or moved to other plants.  We need the planned delivery cost get posted into the Stock account. As per the standard it is not possible, right ?

Now, we are looking the concept of Material Ledger also for achieving this requirement through periodic settlement.

However, what happens in the following cases if we activate material ledger for Raw Materials :

1. If the invoice is received in a different period than the GR period, the planned delivery costs will be posted as price difference only, right ?

2. Also, if we turn on the ML for raw materials, in the case of Production orders, variance will be posted without reference to Production order, correct ?

These situations are disadvantages against achieving our requirement.

Any comments on these points, please.

[kamalkumar_biswas2 · Accepted solution]

Hi

So far I understood...

You are managing delivey cost by giving a manual JV in PRD a/c ..is it?  So.. your material level cost is not with delivery cost.

Even you activate ML position will remain same. When you consume Raw Mat in Prod Order, cost having no delivery cost.

Now explain what you want to achieve through ML or you also want to run Actual costing for Raw Mat..

[former_member218048 · Accepted solution]

Planned delivery cost is not manually posted. It is done through MIRO transaction !

[kamalkumar_biswas2 · Accepted solution]

Hi

So...delivery cost is booking when you are making invoice...hence two diff scenarios will happen..

1. In case RM is defined as price control S, then the diff between GR at standard cost and Inv value inclusive of additional charge will post to PRD a/c and without CKMLCP run it will not nullify by distributing this diff to Closing Inventory and Consumption.

3. In case RM is defined as pr control V then there is no PRD if available stock is sufficient to adjust the new price otherwise if stock is less then some PRD may arise and posted to revenue/expense a/c

So best solution under this scenario is CKMLCP

[Former Member]

Hi,

If you want to use material ledger for this requeriment, the raw material must be with price control S and price determination 3. The difference post at MIRO remain at PRD account, at the end of the month the system is going to settle this difference trough PRY and PRV account to Inventory or cost of sales account.

The variance of the raw material is going to be set to as a multilevel variance only if this raw material is consume in an order.

Hope to help.

[former_member218048]

If there is no stock of the material in the same period, what happens to the price difference amount in the material ledger settlement ?

[kamalkumar_biswas2]

hi

It will be shown as "Not distributed" in CKMLCP run

[Former Member]

Hi, if material was consumed by an order the difference is going to be settle as multilevel variance, if the system doesn´t find tha, then the price difference is going to remain at PRD account as "not distributed" in CKMVFM report, just as Kamal said.

Hope to help.