Purchase account Management

[Former Member]

Hi Experts,

1) Can any one tell the Concept of Purchase account Management,

2) What is Purchase account ? and Purchase offseting account ?

3) Why it is required and ?

4) How to activate it ?

As usually we have 2 accounts when we do GR one is

Stock Debit 955.20

Goods Recipt / Invoice Recipt 955.20

But, after activation i heard it will hit 4 accounts

Stock Debit 955.20

Profit Loss- Vendor-Mtl 955.20

Pur Tradi Goods 955.20

PL- rgrp-Vndr-Mtrl-Offset 955.20

Please Suggest Valuable Inputs

Best Regards

Javeed

[Former Member · Accepted solution]

Hi Javeed,

IF you have activated Purchase account mangement then there will definitely be extra accounts trigerring that will record your purchases ensure that you maintain different accounts for

WRX - GR/ IR account key

EIN Purchase account

EKG Purchase offsetting account

FRE Freight purchase account

1) Can any one tell the Concept of Purchase account Management,

In short you will find the actual purchase price in a G/l (defined in Purchase a/c tra key EIN)

2) What is Purchase account ? and Purchase offseting account ?

In purchase account you will find the parallel posting of Inventory account

IN Purchase offseting account you will get parallel posting of GR/IR clearing account.

3) Why it is required and ?

Normaly you can utilise inventory a/c or Gr/IR clearing a/c to find out actual purchase 0of the plant.

But in case there is price differnece thn it will be posted tp price diffrence a/c .

So in that case you will not get accurate purchase price.

4) How to activate it ?

SPRO- IMG- Valuation and Account Assignment--Account Determination-a/c assngmt Without Wizard- -- Purchase Account Management

Hope you are satisfied .

Thanks and regards

Gitesh

[Former Member · Accepted solution]

Hi Jitest & Javeed,

I have the same requirement, according to your suggestions, I have assigned G/L accounts for respective transaction keys (EIN, EKG, FRE). & I have activated Purchase account management as per your given path.

Example

PO= 100 Pieces of Books @ 9 Rs, Goods Receipt = 100 pieces Received, LIV = 100 pieces of books @ 10

In Migo, it works properly. System Passes the journal entry as

Raw mat. Inventory a/c 900 Dr.

To GR/IR clearing a/c 900 Cr.

Puchase A/c Dr. 900

To Purchase offsetting A/c 900

During invoice Verification LIV = 100 pieces of books @ Rs.10 (price diff of Rs 100)

1. Here I need your advice on the price differences amount of Rs. 100 post to Purchase & Price differences account during MIRO. What configuration I need to do?

2. I need Different document type for Purchase account posting.

I have created purchase offsetting account as B/S item as same as GR/IR account.

Please help me in the above case & guide me for the same.

Thank in advance

It would be my pleasure to get your valuable inputs.

wtih regards,

Alok Ranjan

[Former Member]

Hi Javeed,

Some countries require companies to manage purchase accounts. This account documents the value at which externally procured materials are posted.

Purchase accounts can be updated in the following ways:

• At the receipt value

In this case, the exact amount posted at goods receipt or at invoice receipt is posted to the purchase account.

In Invoice Verification, the system only posts to the stock account u2013 and therefore to the purchase account and to the purchase offsetting account u2013 if the invoice item meets the following conditions (compare Price Variance):

- A price variance has occurred

- The material is subject to moving average price control

- Stock exists for the material

• At the stock value

In this case, the exact amount posted at goods receipt to the GR/IR clearing account is posted to the purchase account.

In Invoice Verification, the system only posts to the purchase account if there is a price difference. The system posts this difference to the stock account or to a price difference account, the sum of these two postings is posted to the purchase account.

Similar to the purchase account, a freight account exists for documenting delivery costs that have been posted for externally procured materials.

If purchase account management is active, the system automatically carries out the additional postings.

To Activate, goto :

Materials Management ® Valuation and Account Assignment ® Account Determination ® Account Determination Without Wizard ® Purchase Account Management ® Activate Purchase Account in Company Code

[Former Member]

Can any One Put a Light on this ?

Regards

Javeed

[Former Member]

Dear,

Some countries require companies to manage purchase accounts. This account documents the value at which externally procured materials are posted.

Have a look at: http://help.sap.com/saphelp_45b/helpdata/en/a8/b99411452b11d189430000e829fbbd/frameset.htm

Check these links will be useful:

Regards,

Syed Hussain.