OBYC PRD PRA Use and issue

[Former Member]

Hello All Experts,

Can you please guide on the use of PRD PRA Key ?

I am getting this account determination issue while issuing goods PRD PRA is not maintained. I tried searching for all threads where I can understand the scenario in PRD PRA is called. Can someone please guide on this as in which all cases PRD PRA is used ?

Its little bit confusion about this.

Experts guidance will be really great on this.

Regards,

Sharu.

[Kremer]

Here is the scenario when PRD PRA makes sense to me:

1. Goods issue at standard price e.g. $100

2. Standard price changed e.g. $105

3. Goods issue reversal, at this point price change arises of $5 and posted to account specified in PRD PRA

[Former Member]

Hello Ajay Sir,

Your answer solved my issue, but I am not able to see the correct answer option to "hit".

Thanks for answer.

@ Moderator - Can you please help making correct answer option available ?

Regards,

Sharu.

[Former Member]

The price which as populated in Price Field from Std Cost Estimate. Current cost estimate shows for July 2016 and last cost estimate was run on July 2015. Like almost after a year.

So is this why it is calling to a price change ?

Regards,

Sharu.

[ajaycwa1981]

Hi Sharu

When was the standard price changed? Are you doing transaction in a back date?

Ajay M

[Former Member]

Yes, its back dated entry. And I think almost years over all price difference casing the issue.

July 2015 is X and July 2016 is Y and I think this is the problem.

Regards,

Sharu.

[ajaycwa1981]

That's exactly the reason. If the price of issue is same ad standard price, it wont hit PRA, as I said

you may close the thread

Ajay M

[Former Member]

Hello Ajay Sir,

Thanks for the reply.

I am doing PGI ( SD ) and system is issuing error. This is manufactured product with HALB.

Regards,

Sharu.

[ajaycwa1981]

Hi Sharu

This is really strange..

1. Do you have Split Valuation or Sales Order Costing applicable in this case?

2. Can you replicate the Error in TEST system? If yes, please assign PRD  PRA GL and see what gets posted here

Br, Ajay M

[ajaycwa1981]

Hi Sharu

For your case, if you feel that the material is being issued at the same price as determined from the Price Control, assign a GL in PRD PRA and see what posting is being made in it. That should give us some leads

It would be better if you can replicate the scenario in TEST system and assign a GL in PRD PRA and see what posting is being made

But as far as I know, PRA is triggered if your material is valuated at, say, S, and S Price is 100, but the issue price determined from Valuation Variant is something else, say, 101

Ajay M

[former_member190652]

Hello Sharu,

Price differences arise when an external amount (ie, amount that differs from quantity multiplied by standard price in material master) is entered for goods issues.  In this case, system will look for PRD transaction key for account determination of price difference.  In this context, we have additional option of specifying general modifier of PRA for further bifurcation of accounts within PRD transaction key.

Sridhar

[ajaycwa1981]

Also, I don't agree to the view that PRA is used onky in ML.

Also the Sap help text from Spro is old and not fully valid

Ajay M

[ajaycwa1981]

Hi Sharu

PRA is used when the material is issued at "external" price. This means if the price control states price of 5£, you are issuing it at say,6£

What exactly are you doing? Are you issuing goods to manufacturing? If yes, check what is the price determined from valuation variant assigned to order type?

Ajay M

[Former Member]

Dear Mukhtar Sir,

I don't have "Material Ledger" Activated for the company code I am working. But I have another company code which deals with ML and both company code using the same Chart of Accounts.

Could it a be a problem ?

Regards,

Sharu.

[former_member198650]

Hi Joshi,

Please go through the below documentation:

Price Difference from Exploded WIP (Lar.) (PRA)

If you use the WIP revaluation of the material ledger, the price variances of the exploded WIP stock of an activity type or a business process are posted to the price differences account with transaction/event key PRA.

Price differences (PRD)

• Price differences arise for materials valuated at standard price in the case of all movements and invoices with a value that differs from the standard price. Examples: goods receipts against purchase orders (if the PO price differs from the standard pricedardpreis), goods issues in respect of which an external amount is entered, invoices (if the invoice price differs from the PO price and the standard price).
• Price differences can also arise in the case of materials with moving average price if there is not enough stock to cover the invoiced quantity. In the case of goods movements in the negative range, the moving average price is not changed. Instead, any price differences arising are posted to a price difference account.
• Depending on the settings for the posting rules for transaction/event key PRD, it is possible to work with or without account modification. If you use account modification, the following modifications are available in the standard system:
  • None for goods and invoice receipts against purchase orders
  • PRF for goods receipts against production orders and
    order settlement
  • PRA for goods issues and other movements
  • PRU for transfer postings (price differences in the case
    of external amounts)

Regards,

Mukthar

[Former Member]

Hello Mukhtar Sir,

Thank for sharing this note. I tried first attempt reading all availbale documents and threads but did not got any either business example or easy read example.

First I thought differences between MAP and Standard Price goes to PRD PRA. but when I checked into material Materials never had MAP its always been "S" so that possibilty of business example also ruled out I think.

Exerts please guide me on this, no clue why system aks for PRD PRA to maintain. also should it be Cost Element ?

Regards,

Sharu.

[former_member198650]

Hi Sharvari,

PRA key will hit if you have activated material ledger.

Regards,

Mukthar