How to reduce the inventory value without reducing the quantity

[former_member586529]

Hi Experts,

We have one question/requirement where we want to reduce the Inventory value (in terms of money) of a material without reducing the stock (Quantity) of that material.

Is there any standard transaction or function available in SAP to adjust the inventory account directly with respect to material? we are aware that there would be impact on our P&L accounts but this is fine.

We would reduce the standard price by adjusting the info records which would ultimately reduce the Standard price of the inventory. But our requirement is to also reduce the actual inventory value directly at G/l account level.

Please let me know if it can be achieved?

Thanks.

Best regards,

Sandeep

[adamu_nuhu]

Hi Sandeep,

(1) If your material is standard price controlled ie price control = S then you have to calculate and release (CK11N/CK24) a new standard price. System will automatically create a price change document to reduce the stock value if the new price is less than the old price.

(2) If your material is moving average price controlled ie price control = V, then you can use MR21. In this case, system will again create a price change document to reduce the inventory value if the new price is less than the old price.

Another possible solution (not recommended) is to make manual journal entry as below :

- Cr Inventory account (B/S)

- Dr change in stock account (P&L).

Make sure you check with your finance business team about the rules in your company.

Regards,

Adamu

[former_member608649]

if you want to reduce the amount with the quantity so use MR22 for the whole material and it will create a new standard price .

If you want to reduce the amount with the quantity and this amount is for a Vendor so use MIRO .

[former_member619071]

Hi, Transaction MIRO with the module of 'Subsequent Debit' will achieve your requirement. Followings are the steps: 1. Run MIRO 2. Select 'Subsequent Debit' for Transaction 3. Input any purchase order 4. Input information of the material in the view of Material 5. Input G/L account in the view of G/L Account

BR

[Prasoon]

Hi,

You may check MR21 to change the material price.

Regards,

Prasoon