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Former Member

value difference

hi,

in SD during pgi or billing, may i know if there will have value differene from sales order happens sometimes?

in MM, when there is a deviation of price between PO and standard price, the difference will be booked in price difference account.

I would like to know if pgi or billing time, will this happens?

thanks

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    Former Member
    Oct 19, 2008 at 03:23 AM

    hello, friend.

    sometimes the cost of goods sold changes from the time of sales order creation and PGI. the situation is the same as in purchasing except its outbound logistics instead of inbound.

    i notice that you have hundreds of postings but without forum points. i suggest that you award points to people you sincerely feel have been helpful. you do earn points by granting points. you can expect that by doing so, more people would be encouraged to help you with quality answers.

    regards.

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    • Former Member Former Member

      hello...

      1. you are correct. in accounting 1, the prices refer to cost of goods, either moving or standard. in accounting 2, they refer to how you value inventory (as per SAP, this may not apply to USA or Europe).

      2. i think again they refer to inventory valuation. how you use these fields depend on the legal requirement of the specific project location. again, these may not apply in the USA or Europe.

      3. since cost of goods in billing is taken from post goods issue, you can conclude there should be no difference. it is likely you will have value differences between the billing and the sales order (i.e. you create sales order, then you change the data in accounting 1 view of MMR, then deliver/PGI. system will get cost on date of PGI). however, costs in sales order do not yet have postings to accounting.

      4. i would say that $50 was in accounting 1, and perhaps in purchase info. but $52.34 is actual purchase cost (MM) or production cost (PP). if you used moving average, then cost of goods will be taken from purchase data (moving average can apply to raw materials for finished goods which can still have standard costs. this subject you can find in other threads on the same subject. there is a good contribution from lakshmipathi).

      regards.

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    Former Member
    Oct 19, 2008 at 03:03 AM

    Hello,

    In SD the pricing details are picked up from the condition records maintained for the respective pricing conditions.

    If the price changes occurs , even there is a provision to change the price in billing by using Pricing Update function. You can even redetermine pricing at billing using this.

    Prase

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    Former Member
    Oct 19, 2008 at 05:43 AM

    Sales Order and Delivery:

    In the case of Sales Order and Delivery, it is optional to add shipment cost, which will add to sales order value in Billing.

    Sales Order and PGI:

    Sales order will capture the sales value, but the accounting entry during PGI is to capture the cost value, which will reduce the costing in inventory.

    Sales order and Billing:

    The possibilities are:

    a] Sales order value is carried forward as it is to Billing.

    b] In the case shipment cost is added during delivery, the value of sales order and billing will differ.

    c] In thecase there have been changes in price and in copy control we have maintained Price Type as 'B', in that case it will capture the latest price, hence even this can lead to difference in value.

    Price difference in case of SD may be possible in terms of follows:

    1. If rounding is done, in that case there might be a little difference of value.

    2. In the case of exports, there might be difference in value, based on currency conversion.

    Regards,

    Rajesh Banka

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