You have posted a warehouse confirmation and expected that the value gets posted inventory general ledger account but instead it is posting to Gain/ Loss from Purchase Valuation Differences that is maintained under differences tab in the inventory sub-ledger.
Reproducing the Issue
- Go to General Ledger work center.
- Go to Journal Entries view and Journal Entries sub-view.
- Apply the advanced filter options and select Journal Entry ID XYZ for the Source Document Type: Warehouse Confirmation of Journal Entry Type: Goods Receipt from Supplier and click View.
The journal entry of an affected document could look as follows:
Finished Product account Debit: 0.00
Unbilled Payables account Credit 100.00
Gain/Loss from Purchase Valuation Differences account Debit 100.00
For the material
- You have maintained the material cost for instance as zero.
- You used the same material in the purchase order with gross price as not zero but as 1 Quantity with 100 as price each.
So, the system behavior is Price valuation differences occur when purchase order price doesn't match inventory cost price, resulting in a different value for the goods receipt
|Material||Purchase order price||Inventory cost||Differences|
Since these differences are not resulting from Warehouse confirmation (Goods and Service Receipt) and Invoice, Goods Receipt/Invoice Receipt Clearing will not make a differences posting than just clearing Purchase in Transit and Unbilled payables account.Now you can follow the process of posting manual entries for material to transfer the balances from differences account to inventory account you select the journal entry type 087 – Manual Entry for Materials, in the new journal entry vouchers.
Hint: In the activity Editing Chart of Accounts there should not be any g/l account posting block for the accounts in question.
To avoid the situation in the future you should maintain the cost in the material master data for the standard perpetual cost methods.
KBA , SRD-FIN-GL , General Ledger , How To