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 instead to Purchase Price Difference.
Reproducing the Issue
Go to Inventory Valuation work center.
- Select GR/IR Clearing.
- Select the Run ID: XX-XX-XXX ( this represents GR/IR Clearing run id ).
- Navigate to Processed Successfully tab and select the Purchasing Document Item ID: YY ( this 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.
- Go to Inventory Valuation work center.
- Select the material and click on View Cost History
For the selected periods, you can see the resulting Capitalized Quantity.
GR/IR run does not capitalize quanity. 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 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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