GR/IR Material Stock Value (Inter company )

[Former Member]

We are doing intercompany process and material is maintained as at standard cost in selling plant and as variable cost in receiving plant. It’s finished good and in config it’s maintained as standard cost

( In material master system didn’t stop to maintain as variable cost for receiving plant.)

I created the intercompany PO and did the GR. After that I was checking the FI documents in the document currency it was showing GR/IR Material value but after that on top I clicked on display currency and changed the option to Local Crcy/Prof.Cent.Val and it showed the value for GR/IR Material 0.Please see following screen shots.Please check the first lines.

I am not sure why this happening.When we buy this part from external vendor in that case we don't see this issue,

[former_member9084]

Hi,

Does the material has price in profit center valuation approach in material master or it is maintained as zero?

Rajesh

[Former Member]

Rajesh,

In Accounting 1 view both standard and moving price is 0.As we started with zero price.In per.unit Price field we have the price maintained .

Raja we have variable in the receiving plant.

[michael_savarimuthu]

Rajesh,

Since you say you don't use production planning, the material at both plants -- sending plant and receiving plant -- should have a valid standard cost (Price Control S) or moving average (Price Control V).  The reason you are getting "0" at the receiving plant is because at GR time at the receiving plant, SAP looks at the price control and price (standard or moving) and valuates the goods movement ($0.00 x quantity = $0.00).

Since the material at the receiving plant is valuated with price control "V", if it does not have any inventory at the moment, I suggest you enter a valid price (at least 0.01 if no inventory) using MR21.  Then try it.  The GR will recalculate the moving average correctly and the entries for GR will be correct as well.  Of course, if there is inventory for this material in receiving plant with "0" moving average  which really doesn't make sense, you may need to make a decision whether to revalue it at a new cost using MR21. 

Please test this in a test environment first!!!!!!!!!

Cheers,

TD

[Former Member]

Toidi,

Seems like you are saying if I am not using PP I need to maintain same price control  in both the plants .Is that correct statement ? If that's right why is that ? Can you please explain in detail.?

Ren

[michael_savarimuthu]

Ren,

No. You don't have to have the same price control. Sorry if I confused you.

All I am saying is the material in both plants must have a valid cost so the GR/GI can be properly valuated.

If you want to use price control "V" for the material in 2222, you must have a cost of at least $0.01 as the moving average price for the material in 2222. Creating a cost estimate won't help since the price control is "V".  Use MR21 to set the moving average price for the material in 2222 (to at least $0.01) and then do the GR.  The system will now calculate the new moving average cost upon GR.

Hope this helps.

Cheers,

TD

[Former Member]

We tried that but the reality is this didn’t happen.  When a cost existed on the material at the receiving plant, the system used that value to post inventory, but did not adjust the moving average to reflect the PO amount.

Cheers

Ren

[michael_savarimuthu]

Ren,

I just re-read your original posting.

The problem is with Profit Center Valuation. 

If you have profit center valuation active, then did you maintain transfer price, currency and valuation profile?

Cheers,

TD

[Former Member]

TD

we are using PO price not a transfer price as it's a inter company .Other things which you  mentioned are already setup .Not sure if  we need to setup something special for inter company  . I found following document .Do you think we need to implement  this BADI ? Just FYI we are not using enhancement pack 5.0 .We have older version.

http://help.sap.com/erp2005_ehp_05/helpdata/en/c5/616893ba30402faeb09c151b4fa24c/frameset.htm

Ren

[michael_savarimuthu]

Ren,

Not sure if the BADI will help. 

Did you try a GR for this material/plant 2222 from a non-intercompany vendor (i.e. standard PO from a regular vendor) and see if the MAP is recalculated?

Cheers,

TD

[Former Member]

TD it worked in case of external vendor.

Cheers

Ren

[udo_werner]

Hi Ren,

the process for cross-company actual costing and it's BADI where you referred to above does not apply to your example.

The behavior that you observe is purposefully built in. You see that because you look at the material cost in profit center valuation. I assume that the profit center of the sender and the receiver are different. Profit center valuation provides the opportunity to set a transfer price for such a process. If you have no transfer price maintained it will fall back to the price at the receiver.

Using the PO price like in legal valuation would not be compatible with the concept of a profit center valuation.

If you still want to use the PO price you should maintain the PO price as transfer price, or use a BADI in transfer price determination to access the PO and read the price from it.

best regards,  Udo

[Former Member]

Udo,

Please check following.

PO price =$90/Each and Qty 25

Gross Price	90.00	USD	1	TON	2,250.00
Freight/Quantity	5.00	USD	1	TON	125.00
FUEL Surcharge %	10.000	%			12.50

Net=2,250.00

Accounting  Document:-

GR/IR Material

2,250.00

Same document When I clicked in Local Crcy/ Prof. Cent Val.=

GR/IR Material

0.00

Issue is GR/IR showing o Local Crcy option.Both plants have different profit center.Sending has standard cost and receiving has Variable cost.

Ren

[udo_werner]

Hi Ren,

As I already explained, in Profit Center Valuation the material price from the receiver is used. If you see 0.00, that points to the situation that your material currently has a valuation price of zero.

That might still be ok, because normally you would expect an invoice that follows, containing info about the final price in legal and in profit center valuation. The invoice would adjust the material price to the invoiced price, if the material is still on stock.

Regards, Udo

[Former Member]

Ren SAP,

I am not sure, but i am thinking are you running Standard Cost estimate in the Receiving Plant..?. Why cant you maintain Price Control 'S" in the receiving plant also, any why its a Finished Product.

Regards

[michael_savarimuthu]

Ren,

Does the receiving plant have a procurement type/special procurement key (F-4?) assigned in MRP2 view of material master?  Is there a (moving average) cost in receiving plant?

Cheers,

TD

[Former Member]

Toidi,

I have procurement Key F and Special Procurement is blank.Yes in receiving plant cost is moving average and just for FYI we don't use production planning.

Cheers

Ren