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Former Member
Jan 07, 2012 at 04:55 AM

freight provision in PO yet price difference

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Hi,

say the material price in MM03 is $10. it is standard price and no freight cost is added.

in PO, i purchase 1000 units. So the total cost is $10,000. i have a condition to provide freight, say $100.

During GR

Dr inventory 10000

Cr grc 10000

Dr price diff 100

Cr freight clearing 100

1) May I know if the GR posting is correct?

2) May I know why debit to price difference as i do provision during PO. What is the purpose of provision even i do provision yet it is going to price difference.

3) How to make the freight also debit to inventory? I know the standard is $10 which is only pure material cost.

Thanks