FERT type for Trading projetcs

[Former Member]

Dear all

We are going to do maintain the Fert material with Price control S for our Trading projects due to thier requirement.The client purchasing the items and selling the same thro 2% value addition.

But i feel below issues will appear. You please comment about this

1. The standard price will provoke the Prie difference G/L account all the times.Selling we are doing one price and same item purchaing next time with another price.

2. I am not clear while price changes at sales order and doing the PGI is price changes G/L will hit know. Suppose if it is not hitting where it will go? because material has some standard price in SO we are adding.

Please confirm the account entries

[Former Member]

done

[Former Member]

Hi

Your selling Price wont affect the Materail Master.

Since it is trading business, Why cant you try with Material Type HAWA.

[Former Member]

Ok. HAWA type and V control we cant keep. The thing is client has the production unit, in future thier sales will go thro Trading company only.

They are having FERT material type , price control S and same material code we are going to extend for new company (in same sap client)

[csaba_szommer]

Sorry Thenna, I misinformed you...

You're right, the difference will be posted to 'Expenses and Revenue from Price Differences' account.

http://www.sapstudymaterials.com/2007/12/mm-008-material-valuation.html

Sorry again,

Csaba

[Former Member]

Thanks much , No issue

[Former Member]

the procurement price has nothing to do with SO price

when you but the higer or lower price than in the matiel master than only the price diff account will hit.

[Former Member]

Hi Buddy

Thanks . But our cycle is we will procure the item example 1000 Rs and selling same material 1100 Rs.

It means that after sales the material price changes will happen at Moving average field only. But again if we are going for purchase in next time the purchase price is not same compares earlier, so that time it may go Price diff. G/l.

Again we are adding some value in sales and doing the PGI, where the accounting entries (G/L) will go to that additional price ?

Here We have maintained the price control is S with same material no for all the times (Purchase, sales )

Edited by: thenna arasu on Sep 18, 2008 7:27 AM

[csaba_szommer]

Hi,

Standard price in material master is to valuate the stock. Standard price has no (dircet) connection with purchase price and sales price, that's why there's no point in speaking about price difference account.

Price difference account would be affected only if you would do inventory revaluation (change the SP).

That's all.

Csaba