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sap mm valuation scenario | SCN

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sap mm valuation scenario

created by RAHUL G on Aug 20, 2012 12:57 PM, last modified by RAHUL G on Aug 20, 2012 1:24 PM Share 0 Tw eet 0 Like 0

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Hi guys, Based up on my experience i had during material valuation,I had made a short document with some scenarios that would help you guys to a little.

sap mm valuation scenario

1st case:Material with Price indicator S (Standard price) in accounting view of Material master record Purchase order with quantity 10 Price of RS 10/pc Once the purchase order is saved, GR is done based on the Purchase order. Stock is maintained for the particular material. Material master record price maintained is Rs 10/pc Stock Quantity: 10 In case in Material Master record,price maintained is RS 9/pc Accounting entry during GR, Accounting entry during GR Debit stock a/c : +10 Debit stock a/c : +9 Credit GR/IR a/c : -10 Credit GR/IR a/c : -10 Total : 0 Total

1(Price difference account )

Let s assume the invoice from the vendor was received after1 month and within the time we have completely consumed the material and thestock quantity for the particular material is zero. The invoice what we got from vendor had a discount and there was a price difference in it. Accounting entry for Stock quantity zero during Invoice verification, Stock Quantity: 0 Credit Vendor account : -8 Debit GR/IR a/c : +10 Total : -2 (Pricedifference account) 2nd case

Material with Price indicator S (Standard price) in accounting view of Material master record Purchase order with quantity 10 Price of RS 10/pc

GR stock : 10 Invoice verification has been done based on the purchase order with some discount on the purchase order quantity, which results in price difference in the invoice.

Accounting entry for stock quantity 10 during invoice verification,

Stock Quantity: 10 Credit Vendor account : -8 Debit GR/IR a/c : +10 Total : -2 (Pricedifference account) 3rd

Material with Price indicator V (Moving average price) in accountingview of Material master record
case:-

http://scn.sap.com/docs/DOC-31035

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Purchase order with quantity 10 Price of RS 10/pc

sap mm valuation scenario | SCN

Once the purchase order is saved, GR is done based on the Purchase order. Stock is maintained for the particular material . Material

master record price maintained is Rs10/pc

Incase in Material Master record, price maintained is RS 9/pc Accounting entryduring GR Debitstock a/c : +10 CreditGR/IR a/c : -10 Total : 0

Stock Quantity: 10 Accounting entry during GR, Debit stock a/c : +10 Credit GR/IR a/c : -10 Total : 0 Note: -

Moving average price in Materialmaster record is always updated based on Purchase order price.

Lets assume the invoice from the vendor was received after1 month and within the time we have completely consumed the material and thestock quantity for the particular material is zero. The invoice what we got from vendor had a discount and there was a price difference in it.

Accounting entry for Stock quantity zero during Invoice verification

Stock Quantity: 0 Credit Vendor account : -8 Debit GR/IR a/c Total : +10 : -2 (Pricedifference account)

4th case:- Material with Price indicator V (Moving average price) in accounting view of Material master record Purchase order with quantity 10 Price of RS 10/pc GR stock : 10 Incase Invoice verification has been done with some discount on the purchase order, The accounting entry would be, Stock Quantity: - 10 Credit Vendor account Debit GR/IR a/c Total : -8 : +10 : -2 (StockAccount)

5th case:- Material with Price indicator V (Moving average price) maintained in material master record Purchase order with quantity 10 Price of RS 10/pc GR Stock : 10 Lets consider a case, in which 5 pcs have been consumed, Stock Quantity: 5 Invoice verification has been done with some discount on the purchase order, The accounting entry would be, Credit Vendor account Debit GR/IR a/c Credit stock account Credit Price difference account : -8 : +10 : -1 (Stock Account) : -1 (Price difference account)

Note:In case of Standard Price the accountingentry will hit only on price difference account.it will not have any effect on stock account.

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Products: sap_erp_logistics_materials_management Topics: enterprise_resource_planning

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