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Former Member
May 08, 2010 at 09:39 AM

Moving average price as price control in material master: Erroneous entries

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Dear All,

Recently we did a price control change from standard price to moving average price for one of our clients and scenario testing was done. We came across the following issue at the IR point and this error occur time to time ( not for all POs )Following steps were followed

Scenario

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 correctly

4.invoice verification is done for the above PO with a price variance of 100 USD. The error occur at this time ( some times )

Correct entry:

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.

( this is same scenario with new purchase order with different master records )

Dr GR/IR account 1000

Dr Stock account 100 (Total price variance is charged to the stock account and its incorrect this should be only 75 as explain above )

Cr Vendor 1100

This error occurs sometimes even though the vendor master record and purchase orders are sand same as the time of pass correct entries . All these time GR based invoice verification tick has activated in PO as well as vendor master .

Appreciate your advice.

Tks

Sandagomi

Edited by: Sandagomi Ranasinghe on May 9, 2010 9:25 AM