Price variance ?

[sandeep_pv]

All,

I am using price control 's' for raw material type .

Suppose for a material 'x' , material master std cost is 100.

I have made an import PO for 'x' material for 1 qty. .

In that Basic price I entered 70.

For Customs condition : I put approximate price as 20 for the clearing agent

vendor .

For Local freight condition : I put approx price of 15 for same clearing agent.

These are the conditions I am using .

So first the clearing agent given the invoice for customs and local freight .

So went to MIRO and selected 'planned delivery charges ' and put actual price for

customs and freight .

For eg actual is , for customs : 25 and freight 20

So while simulating , clearing agent vendor is credited with actual price .

Customs and freight (same GL account ) debited with actual price .

Price 10 should go in PRD account , its not happening.

Please suggest the reasons and also whether these things are right ?

regards,

[Former Member · Accepted solution]

The Custom and freight are accrual consition that means the difference betn planned and invoice will not go to PRD.

PRD will be posted for maaterial difference not accrual diff.

[sandeep_pv · Accepted solution]

Charlie ,

1.Can you please explain as explaining to a layman , what is this accrual ?

2.And why customs and freight conditions are accrual ?

Kindly advise.

regards

[Former Member · Accepted solution]

1.Can you please explain as explaining to a layman , what is this accrual ?

Accrual means what ever the price you enter in that condition will not be affected by tax and that's the reason you have to post as accrual plus the bussiness requiremetns is also there that the freight cost and custom duty etc should not be a part of cost means you have to define as accrual

u can check your pricing with M/08 and find the freight and custom condtion and scroll thruogh right side where you will see this condition are marked for accrual and in M/06 you will see for that caondition is set as accrual

With the aid of the account key, the system can post amounts to certain

types of accruals accounts. For example, rebate accruals which are

calculated from pricing conditions can be posted to the corresponding

account for rebate accruals.

2.And why customs and freight conditions are accrual ?

I explained this above

[sandeep_pv · Accepted solution]

CHarlie,

So for customs and freight conditions in calculation schema , both account key and accrual key should be put ?

regards

[Former Member · Accepted solution]

yes the reason is if you want to post freight is in different a/c then custon then you can chage the acc key other wise keep same but you need the acc key

The account key enables the system to post amounts to certain types of

revenue account. For example, the system can post freight charges

(generated by the freight pricing condition) to the relevant freight

revenue account.