Every time PRD key triggered instead of BSX during MIGO 101 movement

[Varun_Kumar]

Hello Experts,

I experienced that when I tried to do the MIGO (101 Movement) that time system fetched the PRD key only instead of BSX key. The system is generated below Journal entry only every time: - 

Price Difference Account - - - - - - - Debit                      PRD

To GR/IR Clearing Account - - - - - - Credit                    WRX

The entry SHOULD be: - 

Raw Material Inventory Account - - - - -Debit                BSX

To GR/IR Clearing Account - - - - - - - - -Credit               WRX

So, could you please guide me where I missed something with respect to configuration?

Thanks in advance for your prompt assistance.

Please Guide.

Regards,

Varun

Material Master - Accounting 1 view

Purchase Order

Migo

Migo Document

Here we can able to see that instead of Raw Material Inventory system fetched the Price Difference account which is assigned for PRD key.

[ajitkumar · Accepted solution]

your material has price control S and standard price in the material master is 0

so the stock added to inventory is at 0 .Hence it is hitting he prd account

when it is standard price you need to maintain the standard price before production receipt / purchase receipt either thru material cost estimate or MR21.

Once maintained this value will remain till changed .

since this is a purchase if subsequent purchase happen at a different price, you will need to change the std price before receipt

for e.g if Std price is 60 , your PO is at 65 and qty is 10 then 600 will hit bsx and 50 will be thru prd.

[Varun_Kumar · Accepted solution]

Thanks Ajitkumar for your comment. But i have one query here that with respect to Price control indicator S & Account determination 3, so is it regular business practice to update standard rate in material master via MR21 before creation of PO ??

[ajitkumar · Accepted solution]

Regular business practice is to have price control V when procurement is only thru purchases and S for inhouse production and periodic updation of standard price determined thru material cost estimates. An RM is purchased either to be used as a BOM component in production or for trading. Either way it should reflect the total purchase price otherwise your COGS will not be accurate.