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Condition Types on PO/GR

Former Member
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1,136

Hi,

We are just starting to use condition types on the PO.  Up to this point, we were using account assignment category 'K' and posting surcharges such as freight or fuel as expense lines in the account assignment tab.

My question is concerning the account assignment for the condition types.  I know that in MM Account Determination, we link the condition type to a G/L account.

Here is what I'm seeing on our Goods Receipts.  If we post Freight as a statistical condition type, we get a line on the Goods Receipt for Freight with the offset to the Purchase Price Variance Account.  If we also add a discount, the freight is offset by the discount account.  If we only have a discount, the offset goes to the Purchase Price Variance account.

To sum this up, if there is only a discount, or only one surcharge, the amount gets posted to the correct G/L account and the offset goes to the Purchase Price Variance GL account.

If there is a discount and freight, no posting goes to the Purchase Price Variance Account.  The two (freight and discount) offset each other on the Goods Receipt (if they are the same amount).

That doesn't seem right to me.

Is it the way we have our MM Pricing Procedure configured?

I'd appreciate any help or advice on this.

Thanks and regards,

Judy Ortscheid

Accepted Solutions (1)

Accepted Solutions (1)

yang_bai
Active Participant
0 Kudos

Hello Judy,

I'm afraid as per the current system design also addressed by the SAP Note 128752, in case when you create the PO with the account assignment eg K , there will be no  postings to EIN, EKG , FRE keys .


You can also refer the documentation in IMG:


Materials Management

-> Valuation and Account Assignment

   -> Account Determination

      -> Account Determination Without Wizard

         -> Purchase Account Management

          -> Activate Purchase Account in Company Code <<<<

Hence in this case I confirm that the EIN , EKG , FRE keys will not be

posted .

Best regards,
Yang

Former Member
0 Kudos

Thanks Yang.

Now that we are implementing EDI, we are going to use condition types.  We will no longer be using "k" lines on the PO.

We have set up several condition types and we are also using some standard SAP condition types.

My concern is mainly on the GL Accounts on the Goods Receipt.  When I post the GR for a PO with the freight condition, the amount is posted to the freight GL account as defined in MM Account Determination and the offset goes to the Purchase Price Variance Account.

When I post the GR for a PO with an absolute discount condition type, the discount amount is posted to the discount account and the offset posts to the Purchase Price Variance Account.

If I post the GR for a PO with 25.00 for freight, and a 25.00 discount, these amounts net to zero and no posting goes to the Purchase Price Variance Account.

I was thinking that for additional discounts and all surcharges, the offset would always post to the Purchase Price Variance Account.

Let me know if this makes sense.

Thanks and regards,

Judy Ortscheid


rafael_zaragatzky
Active Contributor
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Hi Judy,

The standard functionality is that one leg of all conditions is the PO account, whether it is stock account and/or price diff. account in case of purchasing without acct assmt cat. or the G/L account determined by the acct assmt category. The posting to the price diff. acct in case of purchasing to stock (no acct assmt cat.) and standard price managed material is merely the difference between the total of all conditions (incl. the base price) and the material's standard price.

The offsetting entry for material cost and discounts is the GR/IR account; the offsetting entry for freight is the determined using the accruals account key specified in the pricing procedure (FR1 and FR2 in standard SAP).

Nevertheless, I have seen many clients willing to separate the first leg of the freight condition from the PO account. This seems to be possible with the "trick" described in the wiki document "Posting planned delivery cost to Non-inventory account".

The basic idea is to use the normal freight condition as usual – it will add its amount to the PO account and have the credit side posted to a freight clearing acct. Create another condition type and make it be equal to the freight condition but with minus sign. The cond. category shall be empty (as normal discounts). Then it will subtract the same amount from the PO account posting and post its debit side to the desired accrual acct.

Isn't it what you are trying to achieve?

BR

Raf

Former Member
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Thanks Raf,

What you describe regarding the freight account sounds good to me.  I'll review the document that you referred to.

You mentioned that the offset for discounts should go to the GR/IR.  The discount does impact the GR/IR account.  For example, if the total is 100.00 and the the discount is 10.00, 100.00 is posted to the material inventory account, 90.00 is posted to the GR/IR account, and 10.00 is posted to the Purchase Price Variance Account.  This seems good.  If there is a 10.00 freight charge, the posting looks like this:  100.00 to the material inventory account, 90.00 to the GR/IR account, and 10.00 to the Freight account (no posting to the purchase price variance).  I believe this is standard.

Thanks again for your answer.  It is very helpful.

Best regards,

Judy Ortscheid


rafael_zaragatzky
Active Contributor
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Hi Judy,

I would just like to clarify one thing - not sure if my previous explanation was clear on this point. The price diff acct is only used to balance the accounting document. If the total of all other items doesn't total to zero, the balance is posted to the price diff acct with the opposite sign.

You can never assume that the posting on the price diff acct equals some other amount, e.g. freight amount. This holds only in one particular situation:

  • Material is valuated to standard price
  • The standard price matches perfectly the purchasing price incl. the discount (in your example the discount was zero and the standard price matched the purchasing price).
  • There are no other conditions

BR

Raf

Former Member
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Hi Raf,

Thanks.  This makes it very clear.

I appreciate your help.

Best regards,

Judy

Answers (0)