Price Difference Account hitting after executing the KO88
I am new to Product Costing. We encountered an issue where for one plant ( which moved to Moving Average Price from Standard Price almost 1.5 years back) for few Materials in the Process Orders after executing the Settlement run, the below entry is getting triggered.
91 94110100 Transfer to Inventory 13000
86 11430101 Finished Goods 7000
86 11430102 Finished Goods -Standard Price Variance 6000
As per the Business, this should not hit the GL Account 11430102. Currently, they are passing a reclass entry from 11430102 to 11430101. When we have simulated the issue in the test environment with a new process order and for the same material from productions,this issue is NOT happening.
Checked with all options i am aware but not able to figure out the root cause.
This issue is not happening for all the Materials but only few Materials. Can some one add your valuable inputs on the mentioned issue please.
Mukthar Ali Ahamed N replied
If you are maintaining moving average price in the material master, then system will pass the above entry. If there is no stock coverage, then it posts to stock & price variance proportionately. However, if you maintain the standard price, then system will post the below entry:
Change in inventory Dr/Cr
Price variance Dr/Cr