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Former Member
May 08, 2010 at 04:15 AM

Change from Standard price to MAP

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Hi

Recently we did a price control change from standard price to MAP in one of our clients and scenario testing was done.We came across the following issue at the IR point.Following steps were followed

1. Create a PO for 1000 Kg of material A @ 1USD

2.GR the purchase order- at this point correct values are passed to stock account

3.consumed 250 Kg from the above material and from the same batch- correct values are passed to the accounts.

4.invoice verification is done for the above PO with a price variance of 100 USD. at this point some times entries are passed accurately.

i.e Dr GR/IR account 1000

Dr Stock account 75 (Price variance is charged proportionately charge to the balance stock)

Dr price variance 25 (Price variance is charged proportionately on the consumed stock)

Cr Vendor 1100

But sometimes the value does not pass accurately for the same PO. Accounting entries are as follows.

Dr GR/IR account 1000

Dr Stock account 100 (Total price variance is charged to the stock account)

Cr Vendor 1100

This error occurs sometimes even though the vendor master record and purchase orders have the GR based IR tick activated.

Appreciate your advice.

Malithi