Purchase price variance in subcontracting order

[Former Member]

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.

[former_member505242]

This is the answer from OSS

Dear Customer,

the system works as designed.

When Material Ledger is activated, price differences are always

generated under the circumstances you have described. The reason is

that when material ledger is activated, price differences must not be

included into the stock changes value, otherwise the system would

not be able to calculate an actual price.

When Material Ledger is activated, the customizing setting

for handling price differences in the subcontracting process has no

effect.

Best regards,

Santiago Lorite

AGS Primary Support, Business Suite & Technology u2013 Logistics