Price variance in PO for customs & freight

[sandeep_pv]

All,

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

Suppose for a material 'x' , material master std cost is 100 (which includes basic,customs).

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.

What all configurations to be made for making this happen ?

Kindly advise ?

regards,

[Former Member · Accepted solution]

Hi

The correct entries should be as follows:

<b>MIRO for Planned delivery Costs</b>

Customs Clg a/c Dr 25

Freight Clg a/c Dr 20

Vendor (Clg agent) Cr 45

<b>MIGO</b>

Stock a/c Dr 100

Price Diff Dr 15

GR/IR Cr 70

Customs Clg a/c Cr 25

Freight Clg a/c Cr 20

<b>MIRO for Goods</b>

GR/IR a/c Dr 70

Vendor a/c Cr 70

If the entries are happening as above, then your configuration is correct. Otherwise, we will work on your configuration.

Hope this clarifies.

Thanks

[sandeep_pv · Accepted solution]

Prabhakar,

Thanks for your answer .

If I am putting 1 EGP (Egyprtian currency) for customs and freight in PO , then any problem will be there .

Because business do not want to put the approximate price .

Then any implications will be there ?

regards

[Ramki · Accepted solution]

Hi

Why customs & freight in foreign currency ?

You can put 1 INR (or EGP).

It should not be a problem. You will anyway correct it in MIRO later with actual. Many companies do that.

Best regards

Ramki

[Ramki · Accepted solution]

On second thought:

1) One problem I see is your landed cost in PO will be wrong.

2) Another could be if you have invoice tolerances defined fo delivery costs and large variances could be a problem.

Best regards

Ramki