2621145 - GR/IR Clearing is Posting to Purchase Price Difference

You have executed GR/IR Clearing and you notice that some amounts posted to Purchase Price Difference under Processed Successfully tab.

You are using the perpetual cost method as Moving Average for the material and expecting the difference to capitalize to inventory account (Account Type: Warehouse Inventory) instead of Purchase Price Difference.

SAP Business ByDesign

1. Go to the Inventory Valuation work center.
2. Select GR/IR Clearing view.
3. Select the Run ID: XX-XX-XXX (this represents GR/IR Clearing Run ID).
4. Navigate to the Processed Successfully tab and select the Purchasing Document Item ID: AAA (AAA represents purchasing document ID).

You notice that some amounts are posted under Purchase Price Difference.

It is expected that the GR/IR Clearing to be executed after the goods receipt from supplier. If the Goods receipt from supplier is followed by a series of Goods Issue for Customer this reduces the inventory quantity and if it reached the zero quantity and followed by GR/IR run, if there are any price differences then system results in posting to Purchase Price Differences instead of capitalize to inventory account.

To check the inventory quantity, follow the steps below:

1. Go to the Inventory Valuation work center.
2. Select the material and click View Cost History.

For the selected periods, you can see the resulting Capitalized Quantity.

GR/IR run does not capitalize quantity. It only capitalizes amount but it makes no sense to capitalize amount if there is no quantity for the material in Inventory. The right way is to perform the GR/IR Clearing Run before Goods Issue for Customer, before the Inventory Quantity turned to zero. In that case, system would capitalize the inventory value (when using Moving Average method) and the Inventory Cost would have got adjusted.

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