Implications of MR21

[Former Member]

Hello,

What are the Implications of MR21. What is its impact on Finance

Regards

KM Naidu

[Former Member]

Basically MR21 is meant for price change for a material. Based on the posting date you will give MR21 the accounting document will be posted on that date.

If you increase the price in MR21 the accounting entry will be

Dr. Stock account and credit Price change/revaluation account(P&L).

If you decrease the price the entry will be opposite.

MR21 will also can be done in 2 ways. One is if you want to continue the change for the current period also and another one is the change can be restricted for a particular period.

BSR

[Former Member]

Hi

you are crediting credit Price change/revaluation account(P&L). this is case when RM is in consumption. what if it RM is in stores

Regards

KM Naidu

[former_member188826]

You do MR21 for a material with respect to a plant.

All materials within that plant will be revalued.

The moment a material is consumed, it moves out of the plant and the corresponding receier object is debited. It no longer stays in that plant.