Invoice Verification

[Former Member]

Hi,

We have opened the new fiscal year (2008) and also the new period for MM. As we are aware, any price difference or variance at the time of Invoice Verification, gets debited to the Inventory or the Cost of Sales, if the material is not in stock. However, while doing the Invoice Verification with posting date in the previous fiscal year, say Dec'07, we notice that part of the amount is getting debited to Stock Adjustment Account. Can anyone advise as to why is this happening and how can this be prevented, in other words, the users desire that even if the postings are being done in the previous fiscal year i.e. Dec'07, any price difference or variance at the time of Invoice Verification or Subsequent Debits should be debited to either Inventory or COS if invntory is not there.

Thanks in advance.

Rgds

[Former Member]

Hai Rajeev

The Valuation Standard Price or Moving average Price is a deciding factor for the Posting .

If your Material is having a MAV price then it will always behave like this way. If the value is being covered by Stock then it posts every thing to the Stock account only . if it is not covered it posts the amount up to which is covered by stock and the remaining goes to the Price Difference account

This is the standard Behaviour only it is not advised to change this functionality as it will have implications in your Valuation also

Regards

R.Rajaram

[Former Member]

Hi Kedar/Raja,

Thanks for the clarification, just to have a clearer undersating in this respect, if the stocks are not there, shouldn't the difference be debited to the Cost of Sales ? Is it that it depends on the config settings in the system ?

Rgds,

[Former Member]

Hi,

If stock is not there , value should be posted to PRD. If MAP is price control.

Check your config why it is going to costs of sales.

Regards,

Kedar Kulkarni

[Former Member]

Thanks for the feedback.

[Former Member]

Hi,

If I understood your question properly.

Invoice Verification with posting date in the previous fiscal year, say Dec'07, you notice that part of the amount is getting debited to Stock Adjustment Account.

This is happened becaused on that date partly stock was available, so that party amount to stock and partly amount to PRD.

Regards

Kedar Kulkarni

Edited by: Kedar Kulkarni on Jan 17, 2008 8:52 AM