FERT type for Trading- Price control S

[thenna4u]

Dear all

We are going to do maintain the Fert material with Price control S for our Trading projects due to thier requirement.The client purchasing the items and selling the same thro 2% value addition.

But i feel below issues will appear. You please comment about this

1. The standard price will provoke the Prie difference G/L account all the times.Selling we are doing one price and same item purchaing next time with another price.

2. I am not clear while price changes at sales order and doing the PGI is price changes G/L will hit know. Suppose if it is not hitting where it will go? because material has some standard price in SO we are adding.

Please confirm the account entries

[csaba.szommer]

Hi,

SP is to valuate the material and has nothing to do with purchase price and sales price. That's why there's no point in speaking about the price difference account.

Regards,
Csaba

[thenna4u]

Hi Buddy

Thanks . But our cycle is we will procure the item example 1000 Rs and selling same material 1100 Rs.

It means that after sales the material price changes will happen at Moving average field only. But again if we are going for purchase in next time the purchase price is not same compares earlier, so that time it may go Price diff. G/l.

Again we are adding some value in sales and doing the PGI, where the accounting entries (G/L) will go to that additional price ?

Here We have maintained the price control is S with same material no for all the times (Purchase, sales )

[csaba.szommer]

Hi,

My opinion is the same, this issue has nothing to do with price difference account.

Please understand that your SP is to valuate your stock and there's no (direct) connection between SP and purchase price.
If your purchase price changes, your SP won't change, so the goods will be valuated at the same price. That's why there's no point in speaking about the price difference account, as I told you. If you change the SP (and you have stock), the price difference account will be affected.

The situation is the same with sales price.

Why don't you test it in your sandbox system and check the process?

Csaba

[csaba.szommer]

Sorry, the information given by me is not proper...the difference will be posted to 'Expenses and Revenue from Price Differences' account.
http://www.sapstudymaterials.com/2007/1 ... ation.html