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I created a new MM pricing condition that affects PB00 but I need not to impact PRD transcation

LuisCaFri
Discoverer
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149

Good afternoon, I just recently inhereted MM pricing activities, Finace group has made a request to capture Tariffs expense, so I went ahead and created new MM pricing conditions , after I do the goods receipt because they are not accruals there was a need to affect gross price and ultimatelly have a new net price (Gross Price + Tariffs). when I do my GR/IR and system compares my Raw Materials expence I need to add some type of logic to separae true PPV (Cost (price) differences) for transaction PRD and show tariff impact on a separate transcation . in this case I created ZTR for tariff where I have valuation code group + material valuation class.

I if I treat the new condition as an accrual I see the impact in my new GL account for tariff but when these new pricing conditions are set as not accruals then they all go and hide under PPV umbrela, and Finace team does not want that.

Any help that can be provided will be greatly appreciated.

 

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KASDNA
Explorer

Hi LuisCaFri,

to separate purchace price variance, or other kind of variances, in their nature you should use specific cost component in your material valuation and have an active actual costing and actual cost component split.

Without these one options is to determine the difference between gl account for material purchase, tariff costs by confronting it with the realeased standard cost estimate for the purchased material. 

Otherwise you could try to avoid debiting the purchased material with the new MM condition and register them in another CO object (i.e. cost center) to be able to allocate them to materials.

These solutions differs greatly and their effectivness rely on how the business model regarding inventory valuation is handled.

LuisCaFri
Discoverer
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Thank you Kasdna, let me explore this options you present.