Price Diff calculation at the time of MIRO

[Former Member]

Dear All,

Please tell me the Price Diffrence account clarification in Finance and SAP.

How system is calculation at the time of MIRO.

Regards,

[Former Member · Accepted solution]

Hello Vamshi,

Normally Price difference with respect to MM happens at the time of GR. The price difference at the time of MIRO (IV) happens in case where the invoice is received for a price different from the PO. For example:

In case of a material with Price control as "S" - Standard price

PO price - 100Rs.

Material Master price - 120Rs.

At the time of GR, entry is:

Stock account Dr (BSX) 120

To Price Difference Account (PRD) 20

To GR/IR account (WRX) 100

In case of a material with Price control as "V" - Moving Avg Price

Same Scenario

At the time of GR, entry is:

Stock account Dr (BSX) 120

To GR/IR account 120

Now lets assume that the invoice is received for 130 Rs and we have also accepted the price change, then the accounting entryat the time of MIRO would be

In case of a material with Price control as "S" - Standard price (Stock of the material is available or not)

GR/IR account Dr 100

Price Difference Account Dr 30

To Vendor Account 130

In case of a material with Price control as "V" - Moving Avg Price (Stock of the material is available)

Stock Account Dr 10

Gr/IR Account Dr 120

To vendor 130

In case of a material with Price control as "V" - Moving Avg Price (Stock of the material is not available)

Gr/IR Account Dr 120

Price Difference Account Dr 10

To vendor 130

Hope that clarifies your question.

Regards

Venkatesh

[krishnakishore_gaddam]

Hi,

FOR THE MATERIAL MAINTAINED WITH STANDARD PRICE......Price difference works likethis...

PO Quantity Qnty 10 @ 100 each

during migo price of the material is 100 each

Dr Stock Account 1000

Cr GR/IR Clearing 1000

while doing miro if the price got changed that means for example if it is 110

Dr GR/IR Clearing 1000

Dr Price Difference 100

Cr Vendor Account 1100

If any of the good issue to production between migo and miro the entreis will be like this say for example Qnty issued to production

Dr Gr/Ir clearing 1000

Dr Price Difference 80

Dr Stock Account 20

Cr Vendor Account 1100

Hope it will help you out.

Regards,

Krishna Kishore