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Former Member
Feb 13, 2008 at 12:35 PM

Price difference account in case of FIFO method

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Hi Experts,

One of client has pop up a question:

According the system behaviour the Price difference account is used when the price in the base document is different than the cost of the open layer linked to that base document, this price difference will be recorded in the Price Difference account. Which means if the price of A/P Invoince differs from the price in the Good Receipt PO then the difference will be posted to the price difference account. But how will the balance of the price difference account credited or debited? Should we make a general ledger postings?

At this moment the balance of the price difference account is 40.000 EUR, the balance of stock account is 320.000 EUR. If these items are sold then the cost is 320.000 not 360.000!

So the system collects these price differences but these refers a real FIFO value , so when the item is sold then the system should calculate these price difference values into the real FIFO value to get the real cost of the item.Is it right or not?