You are checking the Cost History of a Material maintained with Perpetual Cost Method Moving Average.
You notice a Goods receipt from Supplier Business Transaction which did not update the Inventory Cost of the material even though the Purchase Price is different to the inventory cost value of the material.
When checking the Journal Entry of this posting you notice that only the original inventory cost was realised on the Material ledger.
The purchase difference was posted to a Gains/Losses, i.e. a Profit and Loss G/L Account.
In general, Purchase Price Differences are posted to Profit and Loss accounts for materials valuated with the Standard Perpetual Cost Method.
It therefore seems that the Perpetual Cost Method must have been changed after the Goods Receipt posting; However, when checking the Material Master Data change log you do not find a change of the Perpetual Cost Method from Standard to Moving Average.
Reproducing the Issue
To check the Inventory Cost History:
- In the Inventory Valuation work center navigate to the Master Data - Materials view.
- Highlight the respective Material - Business Residence combination and press View Cost History.
- In the Inventory Cost History Screen navigate to the Period when the Goods Receipt from Supplier was posted.
- You notice that the Capitalized Quantity got updated.
- As the Purchase value of the goods receipt is different to the Materials inventory cost you expect a change of the inventory cost.
- However, the Resulting Inventory Cost is exactly the same as the Inventory Cost value before the Goods Receipt Posting.
To check the Goods Receipt Postings:
- In the Inventory Cost History Screen press on the Journal Entry ID of the Goods Receipt from Supplier posting.
- In the Posting you notice that the difference between the original inventory cost and the Purchase price based on the Purchase order Item was posted to a Gains/Losses account, e.g. Difference from Purchasing, just as this would be the case of Materials maintained with the Standard Perpetual cost Method.
- As the material is maintained with Moving Average Perpetual Cost Method you expected the purchase price difference to update the Material inventory cost.
- However, the Material Master data change log does not document any Perpetual Cost Method change since the Goods receipt posting.
The Inventory Cost of Materials maintained with the Moving Average Perpetual cost method always gets updated either through Goods receipt postings or through GR/IR clearing postings (provided purchase price differences were identified and are to be capitalized on the Material Ledger).
Price Differences posted for Materials maintained with the Standard cost method will always be posted to Profit and Loss accounts and never be capitalized on the Material Ledger.
Hence, the Standard Perpetual Cost Method must have been in place when the Good Receipt posted purchase price differences to a separate Profit and Loss Account.
Changes in regards to the Material Valuation cannot be found in the general Material Master Data Change Log.
You can only find them in the Material Valuation Change log.
To check for Material Valuation relevant changes:
- Navigate to the Inventory Valuation work center.
- Go to the Master Data - Materials view and find the respective Material - Business Residence combination.
- Now press Maintain Valuation Data.
- In the new screen press 'View Changes'.
- In the Changes: Material Valuation screen just press Go.
You can now see that the perpetual cost method was indeed changed from Standard to Moving Average after the Goods Receipt from Supplier posting. This change cannot be found in the general Material master data change log.
KBA , SRD-FIN-GL , General Ledger , How To