You've executed a GR/IR Clearing run that finished with a Purchase Price Difference for a specific Purchasing Document Item. While checking the postings done to the Offsetting Accounts you expect the full purchase price difference amount to be posted to a stock account (G/L Account Type Warehouse Inventory).
Basically, in the Business Configuration activity Posting Control Profiles for Procurement Processes you have chosen to post the payment and price difference to the original expense account.
However, you notice the amount was split among two Offsetting Accounts. Only part of the amount was posted to a stock account. The remaining part was posted to an account of type Differences, and you don't understand why.
Reproducing the Issue
- Go to Inventory Valuation work center
- Go to Periodic Tasks > GR/IR Clearing view
- Open the respective GR/IR Clearing run
- Go to Processed Successfully tab
- Find the respective Purchasing Document Item (notice the Purchase Price Difference amount)
Under Details section, notice that Purchase Price Difference amount was split between the stock (Warehouse Inventory) account and another account of type Differences.
Purchase Price Difference amount: 1.000,00 GBP
Amount posted to stock account: 900,00 GBP
Amount posted to Differences account: 100,00 GBP
The answer to the split posting upon execution of GR/IR Clearing run is there should be a partial stock coverage at the time of execution, which can be found by checking the Material Cost History of the material contained in the respective Purchasing Document Item. You should check the material cost history for the period/year that the Goods Receipt and Invoice Receipt Clearing run has been posted. Since there's a difference in the Resulting Inventory Quantity between the beginning of the period and the date the GR/IR Clearing was posted (e.g. quantity decreased), the system will post the purchase price difference proportionally considering this decreased quantity in stock.
Continuing the example given in previous section:
- Inventory quantity in the beginning of the period: 1000 case
- Goods Transfer: -100 case (Resulting Inventory Quantity: 900 case)
- GR/IR Run is executed (clearing runs change only the inventory value, never the inventory quantity): Resulting Inventory Quantity is 900 case
At this moment the system compares initial quantity (1000) with quantity at the time of GR/IR (900) and then posts 900 to stock account and the difference (100) to the Differences account.
Remark: material has Perpetual Cost Method Moving Average.
System behaves as expected here.
Moving Average Cost Method
GR/IR Clearing Run – Price Differences with Moving Average Cost Method
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