value difference

[Former Member]

hi,

in SD during pgi or billing, may i know if there will have value differene from sales order happens sometimes?

in MM, when there is a deviation of price between PO and standard price, the difference will be booked in price difference account.

I would like to know if pgi or billing time, will this happens?

thanks

[Former Member · Accepted solution]

hello, friend.

sometimes the cost of goods sold changes from the time of sales order creation and PGI. the situation is the same as in purchasing except its outbound logistics instead of inbound.

i notice that you have hundreds of postings but without forum points. i suggest that you award points to people you sincerely feel have been helpful. you do earn points by granting points. you can expect that by doing so, more people would be encouraged to help you with quality answers.

regards.

[Former Member · Accepted solution]

hi jonathan,

i would say all the genuine reply i award point. how can you say i never award point?

please do not say thing which is not real. you can check with SDN whether if i have not awarded point

[Former Member · Accepted solution]

hello again.

if such is the case, then accept our apologies.

regards.

[Former Member · Accepted solution]

hi,

may i know if there is a value difference either during pgi or billing, how does pgi or billing handles the value difference? a separate GL account for difference just like MM or how?

thanks

[Former Member · Accepted solution]

hello, ask comm.

billing takes the cost of goods sold from PGI. when PGI is done, accounting documents are created and cost of goods is posted in accounting.

as to difference in value, it should more or less follow the logic in MM. however, since there are standard pricing and moving average pricing, at least one of these may be relevant for value difference (variance) posting. in standard pricing, a fixed cost is entered in the accounting 1 view of the material master. this figure is used as cost of goods sold when doing PGI. this figure might be different from actual costs, and differences are posted to a GL account, as you mentioned.

a few days ago, a similar issue was discussed in another thread. will try to look for more details.

best regards.

[Former Member · Accepted solution]

hi,

you have been helpful.

ya, during pgi, cogs is debited and inventory is credited.

i think during pgi there is no differences but only when billing. what do you think?

1) standard price, when VK13 unit price different from accounting view standard price, then the variance will be in variance gl account during billing?

2) if it is based on map, when VK13 unit price different from accounting view map, the variance will add/minus from the stock account during billing?

thanks

[Former Member · Accepted solution]

hello...

the entry in standard price in accounting view (material master) refers to cost of goods, while price data in VK13/VK33 refers to your company's selling price to customers. the difference is posted as profit margin rather than value difference.

since billing takes cost of goods from PGI, there should be no value difference.

the value difference arises when, say, you set standard price (cost of goods) as $50.00 per unit, but production cost per unit is actually $52.34. then, the value difference is calculated and posted to accounting. the actual cost data can come from MM (actual acquisition cost) and PP (settlement of production cost). how FI calculates and posts the difference is something i have to check.

cheers.

[Former Member · Accepted solution]

hi,

you have made myself clear.

1) to confirm with you, in mm03 accounting view 1 and 2, they are referring to cost and not selling price, right?

2) what about the determination of lowest value in accounting view 2, the third line for tax price and commercial price. i was thinking that is the selling price for finished goods or merchandise item.

3) what do you mean by this? "since billing takes cost of goods from PGI, there should be no value difference."

4) the last paragrah explanation of value difference of 50 and 52.34 is meant in MM and not SD, am i correct?

so i would assume 50 is from purchase info record whereas 52.34 is in accounting view. correct?

thanks alot

[Former Member · Accepted solution]

hello...

1. you are correct. in accounting 1, the prices refer to cost of goods, either moving or standard. in accounting 2, they refer to how you value inventory (as per SAP, this may not apply to USA or Europe).

2. i think again they refer to inventory valuation. how you use these fields depend on the legal requirement of the specific project location. again, these may not apply in the USA or Europe.

3. since cost of goods in billing is taken from post goods issue, you can conclude there should be no difference. it is likely you will have value differences between the billing and the sales order (i.e. you create sales order, then you change the data in accounting 1 view of MMR, then deliver/PGI. system will get cost on date of PGI). however, costs in sales order do not yet have postings to accounting.

4. i would say that $50 was in accounting 1, and perhaps in purchase info. but $52.34 is actual purchase cost (MM) or production cost (PP). if you used moving average, then cost of goods will be taken from purchase data (moving average can apply to raw materials for finished goods which can still have standard costs. this subject you can find in other threads on the same subject. there is a good contribution from lakshmipathi).

regards.

[Former Member]

Sales Order and Delivery:

In the case of Sales Order and Delivery, it is optional to add shipment cost, which will add to sales order value in Billing.

Sales Order and PGI:

Sales order will capture the sales value, but the accounting entry during PGI is to capture the cost value, which will reduce the costing in inventory.

Sales order and Billing:

The possibilities are:

a] Sales order value is carried forward as it is to Billing.

b] In the case shipment cost is added during delivery, the value of sales order and billing will differ.

c] In thecase there have been changes in price and in copy control we have maintained Price Type as 'B', in that case it will capture the latest price, hence even this can lead to difference in value.

Price difference in case of SD may be possible in terms of follows:

1. If rounding is done, in that case there might be a little difference of value.

2. In the case of exports, there might be difference in value, based on currency conversion.

Regards,

Rajesh Banka

[Former Member]

Hello,

In SD the pricing details are picked up from the condition records maintained for the respective pricing conditions.

If the price changes occurs , even there is a provision to change the price in billing by using Pricing Update function. You can even redetermine pricing at billing using this.

Prase