Purchase price variance in subcontracting order

Our customer has the following scenario:

 Purchase account is posted with the value of stock subsequently purchase price variance is a legal account

 Material ledger is active

 Inventories are managed with standard price for each material code

 Latin method management of inventories post stock values on managerial account

In good receipt with a subcontracting order, in case of purchase price variance, legal account of purchase price variance is posted generating a wrong reconciliation between managerial and legal posting.

Example

The subcontractor is a co packer that assembles material A to produce material B

Material A has a standard price of 3

Material B has a standard price of 5

If Co packer fees have a value of 2 no purchase price variance occurs during good receipt, as a matter of fact :

(Co packing fees) 2 + (Material A) 3 = (Material B) 5

Else if co packer fees have a value of 3 a purchase price variance of 1 occurs and itu2019s posted using transaction key u201CPRDu201D. On FI the following document is posted:

Legenda : L stands for legal account , M stands for managerial account

(L) Co packing Fees 3

(L) Invoice to receive 3

(L)Purchase price variance 1

(M) Consumption Material A 3

(M) Stock Material A 3

(M) Stock Material B 5

(M) Production Confirmation Material B 6

In this scenario Purchase price variance should be a managerial account, but transaction key is PRD and changing the account would affect every posting.