Error during subsequent credit - NEGATIVE MOVING AVERAGE PRICE

[Former Member]

Dear Experts,

We are trying to post a Subsequent Credit because of the below scenario.

We have made PO for 1000 rupees @ 10 rupees for 100 numbers.

When we made GR the material doc. value is 1000 numbers.

After this goods are issued.

So at the time of IR there is no stock.

Actual invoice value is now 200 rupees @ 2 rupees for for 100 numbers.

So we passed invoice for 1000 rupees and tried to pass a subsequent credit for 800 rupees.

Logically offsetting entry should flow to "price difference" account. But unwillingly it is flowing to "inventory account" and showing error due to NEGATIVE MOVING AVERAGE PRICE.

Please suggest solution.

Thanks.

- Ganapathi - 96111 01459.

[Former Member · Accepted solution]

Dear Mr. Radhakrhishan,

Thanks for reverting on this issue again.

In the books it is written, *An invoice must be entered as a subsequent debit if a purchase order item has already been invoiced and further costs are incurred. (For example, a vendor has inadvertently invoiced you at

too low a price and then sends a second invoice for the difference.)"

But in our case we can consider this as "Vendor has has inadvertently invoiced at too HIGH price and then sends a second invoice for the difference". In this case what to do? Hope we may have to pass the Sub-sequent Credit.

In your case, we have raised a PO with a HIGHER price but later want to adjust the amount as per the vendor invoice which is quite LESSER than the PO price.

So please suggest, if you have any solution.

Ganapathi

9611101459.

[Former Member · Accepted solution]

Hi Ganapathi,

I feel very sorry for my wrong understanding of the scenario. Now i got clarified from your ellaborations.

Please try this option as i have taken notes from SAP when MAP becomes Negative during Invoice posting.

Try to get some hints from this ( if possible ) to suit your scenario.

Before your posting of the invoice, you need to increase the value of the stock.

1. Goto Tcode MM03, accounting view find the value of the filed MBEW u2013 SALK3 ( Total value )

2. Invoice item value according to invoice ( which you are trying to post )

3. In the invoice verification, change the invoice item amount to a value which is high enough and simulate the invoice

During invoice verification the value of ( 3-2) is posted to sock. It must be > 1. Post a subsequent debit with the amount ( 3+1) u2013 ( 2) for the affected material / Plant through MR22.

This is only to build the stock value and later you can minise according to your requirement.

Regards,

Dilli Babu R

[Former Member]

Dear Mr. Radhakrishnan,

It was a valuable suggestion.

Thanks.

[Former Member]

Dear Mr. Radhakrishnan,

Thanks for the response. But it is subsequent credit only. For the vendor, it will be debit note.

In fact it is working fine in our development server. i.e. It is posting to ''Price difference account" in our development server.

But it is posting wrongly to "inventory account'" in the production server.

I could not know where to view the settings of automatic postings for this transaction. Please suggest.

- Ganapathi

9611101459.

[Former Member]

Hi Ganapathi,

I hope you have misunderstood the concept of Subsequent credit and Subsequent Debit.

This is the notes from the SAP Certification material

*An invoice must be entered as a subsequent debit if a purchase order item has already been

invoiced and further costs are incurred. (For example, a vendor has inadvertently invoiced you at

too low a price and then sends a second invoice for the difference.)*

In your case, you have raised a PO with a lower price but later want to adjust the amount as per the vendor invoice which is quite higher than the PO price.

Hope my explanation clarifies the concept of Subsequent Debit.

When you are liable to pay then you need to post Subsequent Credit when you are expected to receive amount from your vendor then you need to post Subsequent Debit.

In the books of Vendor he will be creating a Credit note and not a DEBIT NOTE as per your statement.

Please post if still needs clarification.

Regards,

Dilli Babu Radhakrishnan

[Former Member]

For negative MAP , there are steps which are given in SAP note 356757. Follow this steps to overcome this issue.

The notes goes as...

Summary

Symptom

When you try to post an invoice for the purchase order, the system generates error message M8783: 'Moving average price for material & & & is negative'.

Additional key words

MRHR, MR1M, MIRO, MMVAL, M8783

Cause and prerequisites

You posted a valuated goods receipt for a purchasing document for a material with moving average price control.When the invoice was posted (invoice item with price variance for goods receipt), the system generates error message M8783: 'Moving average price for material & & & is negative'.

Between the posting of the original goods receipt and the entry of the invoice, the system already posted additional valuation-relevant transactions/events (goods movements, invoices and so on, can be displayed with Transaction MR51).

The invoice verification tries (for stock coverage) to credit/subsequently debit the difference between the value of goods received and invoice item value for the stock.However, the material total value must not become negative by this stock posting.

Solution

Before you post the invoice, you must first increase the stock value.

The amount by which the stock value must be increased at least can be calculated from the following values:

1. Transaction MM03, accounting view material master, field 'Total value' (MBEW-SALK3)

2. Invoice item value according to invoice

3. In the invoice verification (Transaction MR01, MR1M, MIRO), change the invoice item amount to a value which is high enough and simulate the invoice to receive the value which would be posted for this item to the GR/IR account.

In the invoice verification, the value (3) minus (2) is posted to stock. It must be larger than (1).Post a subsequent debit with the amount (3) + (1) - (2) for the affected material/plant (Transaction MR22).

You can post the invoice afterwards.

[Former Member]

Hi,

The scenario which you are explaining depicts Subsequent debit and not Subsequent Credit.

As the cost needs to be apportioned to the stock items as IR value > GR value, the system is searching for stock. I hope you will be having V as the price control indicator.

The only way is you need to increase your stock or increase the rate of the material by using MR21 transaction and then try to post the Sub Debit.

In case if GI is reversible you can reverse GI, followed by GR then post the invoice with the actual value so the increased value will be posted to your stock account.

Regards,