sap mm valuation scenario

Hi guys,

Based up on my experience i had during material valuation,I had made a short document with some scenarios
that would help you guys to a little.

sap mm valuation scenario

st
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case:-
Material with Price indicator S (Standard price) in accounting view of Material master record

• Purchase order
with quantity 10
• Price of RS 10/pc

Once the purchase order is saved, GR is done based on the Purchase order. Stock is maintained for the
particular material.

Material master record price maintained is Rs 10/pc

Stock Quantity: 10 In case in Material Master record,price maintained is RS 9/pc
Accounting entry during GR, Accounting entry during GR
Debit stock a/c : +10 Debit stock a/c : +9
Credit GR/IR a/c : -10 Credit GR/IR a/c : -10
Total                      :      0                                          Total                       : 1(Price difference account )

Let’  s assume the invoice from the vendor was received after1 month and within the time we
have completely consumed the material and thestock quantity for the particular material is zero. 
The invoice what we got from vendor had a discount and there was a price
difference in it.
Accounting entry for Stock quantity zero during Invoice verification,
Stock Quantity: 0
Credit Vendor account : -8
Debit GR/IR a/c : +10
Total : -2 (Pricedifference account)

Generated by Jive on 2016-01-18+01:00

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sap mm valuation scenario

nd
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case Material with Price indicator S (Standard price) in accounting view of Material master record
• Purchase order
with quantity 10
• Price of RS 10/pc

GR stock : 10
Invoice verification has been done based on the purchase order with some discount on the purchase order
quantity, which results in price difference in the invoice.
Accounting entry for stock quantity 10 during invoice verification,
Stock Quantity: 10
Credit Vendor account : -8
Debit GR/IR a/c : +10
Total : -2 (Pricedifference account)

rd
3
case:- Material with Price indicator V (Moving average price) in accountingview of Material master record
• Purchase order
with quantity 10
• Price of RS 10/pc

Once the purchase order is saved, GR is done based on the Purchase order. Stock is maintained for the
particular material
. Material master record price maintained is Rs10/pc
Stock Quantity: 10 Incase in Material Master record, price maintained is RS 9/pc
Accounting entry during GR, Accounting entryduring GR
Debit stock a/c : +10 Debitstock a/c : +10
Credit GR/IR a/c : -10 CreditGR/IR a/c : -10
Total : 0 Total : 0

Note: - Moving average price in Materialmaster record is always updated based on Purchase order
price.

Let’s assume the invoice from the vendor was received after1 month and within the time we have
completely consumed the material and thestock quantity for the particular material is zero. The
invoice what we got from vendor had a discount and there was a price difference in it.

Accounting entry for Stock quantity zero during Invoice verification

Stock Quantity: 0
Credit Vendor account : -8
Debit GR/IR a/c : +10

Generated by Jive on 2016-01-18+01:00

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sap mm valuation scenario

Total : -2 (Pricedifference account)

th
4
case:- Material with Price indicator V (Moving average price) in accounting view of Material master record
• Purchase order
with quantity 10
• Price of RS 10/pc

GR stock : 10
Incase Invoice verification has been done with some discount on the purchase order,
The accounting entry would be,
Stock Quantity: - 10
Credit Vendor account : -8
Debit GR/IR a/c : +10
Total : -2 (StockAccount)

th
5
case:- Material with Price indicator V (Moving average price) maintained in material master record
• Purchase order
with quantity 10
• Price of RS 10/pc

GR Stock : 10
Let’s consider a case, in which 5 pcs have been consumed,

Stock Quantity: 5
Invoice verification has been done with some discount on the purchase order,

The accounting entry would be,

Credit Vendor account : -8
Debit GR/IR a/c : +10
Credit stock account : -1 (Stock Account)
Credit Price difference account : -1 (Price difference account)

Note:- In case of Standard Price the accountingentry will hit only on price difference account.it will not have
any effect on stock account.

Generated by Jive on 2016-01-18+01:00

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