FI/MM - Purchase account management

[sapfinance_eu]

Hello,

I'm starting my second blog, hopefully you have appreciate the first one Enrich Production Variance.

I would like to present a particular point important when you are implementing Material Ledger, it's the way of manage purchase account.

Purchase account management is currently used in the following countries:

• Belgium

• Colombia

• Finland

• France

• Italy

• Portugal

• Spain

The point of customizing is here:

Screen copy of path into customizing

 

and the detail of the customizing is:

Detail of the input

 

The question is: what is that ?

In case you are using Material Ledger, there is a principle recommend by SAP that PRD and PRY accounts have to use the same root.

I want to explain which difference we have on the subject:

Case 1 - Valuation option according to stock value =Inventory value (item managed as standard)

• case of a discrepancy with the invoice

Example: material with standard price:10€ /U,

•  PO : 50 U, 10€ /U, 


•  Invoice : 50 U, 20€ /U

Case 1 - Inventory value - case of a discrepancy with the invoice

 

• case of a discrepancy with the order and the invoice

Ie : material managed with standard price at 10€/U

•  PO : 50 U, 20€ /U, 


•  Invoice : 50 U, 30€ /U

Case 1 - Inventory value - case of a discrepancy with the order and the invoice

Case 2 - Valuation option according to stock value = Purchasing value (item managed as standard)

• case of a discrepancy with the invoice

Example: material with standard price:10€ /U,

•  PO : 50 U, 10€ /U, 


•  Invoice : 50 U, 20€ /U

Case 2 - Purchasing value - case of a discrepancy with the invoice

• case of a discrepancy with the order and the invoice

Ie : material managed with standard price at 10€/U

•  PO : 50 U, 20€ /U, 


•  Invoice : 50 U, 30€ /U

Case 2 - Purchasing value - case of a discrepancy with the order and the invoice

 

Conclusion

Case 1 - The Price Purchase Variance is booked base on key “PRD” on purchasing account

Case 2 - The purchase variance must be accounted for via the “PRD” key on the variation stock account, so as not to distort the balance of variation stock. For country like France and Spain is mandatory

Best practices from SAP around this topic are:

To not impact the purchasing account with ML closing, it’s highly recommended to:

• Manage purchasing accounts at actual value

• Manage PPV accounts on variation stock

 

Comments

Through blogs.sap.com, I'm trying to share knowledge on S/4HANA. please give me your comment, I'll appreciate it.

Please don't hesitate to follow me or/and to share the article, thanks in advance,

Philippe