Skip to Content
author's profile photo Former Member
Former Member

Explanation about invoice reversal for standard price.

Hi,

Please see the excerpt from SAP help below. I extracted this example in sap help found at http://help.sap.com/saphelp_47x200/helpdata/en/fc/85c5371e5db25fe10000009b38f8cf/frameset.htm

With regards to the example found below i dont understand why we cant do a simple reversal of the invoice 1 as follows :-

debit vendor account by 500

and credit GR/IR account by 500

Instead of the above simple reversal, the sap help is saying that we need to use a different stock value of 550. Can someone explain the following 2 questions :-

1) Why shd we use this 550 value instead of the 500?

2) What will go wrong if we use the value 500 to do the reversal?

Excerpt from SAP help :-

Goods receipt

=============

The stock account is posted with the receipt value based on the standard price.

Delivered qty X standard price

50 pcs X $10/pc = $500

The offsetting entry is posted to the GR/IR clearing account.

Invoice 1

=========

The GR/IR clearing account is cleared on the basis of the invoice price.

Invoiced qty X Invoice price

50 pcs X 10/pc = $500

The offsetting entry is posted to the vendor account.

Invoice 2

=========

The GR/IR clearing account is cleared on the basis of the invoice price.

Invoiced qty X Invoice price

50 pcs X 11/pc = $550

The offsetting entry is posted to the vendor account.

Reversal of invoice 1

=====================

The invoice quantity is greater than the goods receipt quantity. The credit memo quantity is covered by the quantity of the invoice surplus. The GR/IR clearing account is posted as follows:

qty X (Clearing value - goods receipt value / Invoice qty - Goods receipt qty) = 50 X (1050 - 500 / 100 - 50) = 550

The credit memo amount is posted to the vendor account. The credit memo amount is different to the posting on the GR/IR clearing account, so the difference is posted to the price difference account.

Add a comment
10|10000 characters needed characters exceeded

Related questions

2 Answers

  • Best Answer
    Posted on Dec 19, 2008 at 05:46 AM

    hi,

    THis is because while making the credit memo, in your stock you don't have the stock coverage so till the stock coverage its posted to the GR/IR account while after that ie. the rest amount is posted to the PRD account...

    If Credit memo is of 500 then, the system shd hit GR/IR account only..because there is a stoc kcoverage for the same...

    If credit memo is for 550, then both GR/IR account and PRD will be hit...

    Hope its clear...

    Regards

    Priyanka.P

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Dec 19, 2008 at 05:48 AM

    Hi,

    This is given as Price difference b/w PO and IR.

    Regards,

    Sachin

    Edited by: SACHIN KUMAR on Dec 19, 2008 11:19 AM

    Add a comment
    10|10000 characters needed characters exceeded

    • Former Member

      the price difference only happens in the invoice 2 but the invoice 1 is using the same price as the PO. so when we reverse the invoice 1 then why shd there be a calculation for the price difference.

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.