Material is having 2 prices in every month

[Vikash_Sharma]

Hi gurus,

I have came across one scenario in which a material is having 2 prices.

Example: From 1 Jan -- 14 Jan material cost is 1000 Rs. and from 15 Jan-31 Jan material cost is 1200 Rs. and PO is created on 1 Jan and delivery is made on 16 Jan. now the material cost in this duration is 1200 Rs but PO is created for 1000 Rs.

how to achieve this scenario.how to do configuration because every month we are placing PO to vendor.
do we need to change the PO value or there is some configuration to receive the goods and post the invoice of according to GR value as well as update of PO value.

Need Help.

[former_member183424 · Accepted solution]

Purchase order's price will be finalized when you will create purchase order. It is possible to fetch the price with regards to either document date or delivery date (with price date category). If your PO date is 1 Jan and delivery date is 16 Jan, then you (or your business) need to finalize the price date category.

You are talking about material cost, you can only use one material price for one material master (either moving or standard) and it will not depend upon any date.

If you goods receipt is most priority, then you can check the flexibility of automatic purchase order during goods receipt

In all cases, you need to maintain the price in info record with regards to your required validity date.

[Vikash_Sharma · Accepted solution]

HI,

you are right. but we have to enter each period in info record manually. and its very hectic thing to do.. what about Split valuation..can we use ?  if yes then please suggest how to configure ?

[former_member183424 · Accepted solution]

You can use LSMW to do the mass upload.

[Vikash_Sharma · Accepted solution]

I did LSMW for vendor and material, never tried for info-record validity period.any guidline would be very helpfull for me.

[jagdeepsingh83]

Why not you use scheduling agreements with Time Dependent activated on the document type, let buyer maintain the schedule for delivery.

Then as per GR date and conditions validity maintianed in SA will determine the current price. I hope this is simple for you other than going so much trouble..

[JL23]

we have to enter each period in info record manually. and its very hectic thing to do..      

Really? Good buyers do the price update in the info record while they still hang on the phone with the vendor.

LSMW

I cannot even imagine that it would be easier to prepare a template to load prices than doing the update directly in an info record, except you get some thousand price changes for catalog items.

what about Split valuation..can we use ?

Honestly, it is a totally different concept and not related to vendor price determination. It is about valuating portions of your stock separately. Imported goods vs locally procured, bought goods vs own manufactured. Separate valuation per batch number etc etc.

Honestly, recommending to go use split valuation should always come along with the hint that you have to create new materials too. thinking about split valuation should be done in a (re-)design phase, but changing from to split valuation in a active environment is rather an art than something that can be done incidentally. The steps for customizing are well explained and can be found in SCN and help.sap.com. Go search for it. I can't stop wasting your time to find out yourself that this will not at all help you to get the right price into your purchase order.

[Former Member]

For this change of price of the PO item value i would not recommend to change de PO price, you can do the GR with the old price and then when you do the MIRO you can adjust the price and automatically the system will update the average price.

Greetings

[BijayKumarBarik]

Hi,

As your material having two different price- you can go for split valuation for material and maintain the two different price with valuation types for same material. Now go for Automatic purchase order creation based on goods receipt and do invoice verification for vendor  WRT Automatic purchase order created on goods receipt.

Regards,

Biju K

[Vikash_Sharma]

Ok...what movement type ???
But at GR price will be picked from info-record, as per my knowledge we can't enter price at GR in any case.

I tried your scenario, but with 101 Mvt type... i'm getting error ...enter the net price(info-record must be there to pick the price) ..so not possible with 101 Mvt Type. and 501 it is not creating purchase order automatic...for 501 i did configure automatic PO setting  in IMG

[Former Member]

Hi Sharma,

Your PO price is the final price if you are the seller. You cant change the price during the delivery. For example, if someone orders a phone for 1000 rupees and when you delivers it will you give it for 1200 ? The SO and Invoice should be 1000 rupees only and not 1200. There is no necessity to change the PO value.

If you can provide more inputs on your scenario may be we can help further.

Regards

[Vikash_Sharma]

Hi Shriram,

Read the replies and if possible then please suggest what should i do.??

[JL23]

Where did you come across such scenario?

Are you serious with that question: "do we need to change the PO value"?

You price in the PO is the price that you agreed with your vendor. How can you assume that this price has to be changed? This price must only be changed after having contact with your vendor and having negotiated and agreed to a new price.

What you see in material master is your valuation price, in most companies it is a moving average price in case of purchased materials. But some might have a reasons to use standard prices e.g. to avoid heavy changes in their finished goods calculations when there is a bigger fluctuation of market prices.

And if this standard price is set with a standard cost estimate, then there is a valid from and valid to date to this estimate. And the variance between PO and standard price is posted to a difference account.