2063623 - Warehouse Confirmations Are Posting To General Ledger Account Gain/Loss From Purchase Valuation Differences Instead Of Inventory Account

After posted a warehouse confirmation and expected that the value gets posted to the inventory G/L Account, but instead it is posting to Gain/ Loss from Purchase Valuation Differences that is maintained under Differences tab in the inventory sub-ledger.

SAP Business ByDesign

1. Go to General Ledger work center.
2. Go to Journal Entries view and Journal Entries subview.
3. Apply the advanced filter options and select Journal Entry ID XYZ (XYZ means the Journal Entry ID) 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 (Tax will affect the exact amount)

For the material

1. Maintained the material cost for instance as zero.
2. 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

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.

Note: If the posted journal entry amount from warehouse confirmation is different than expected, check change log for the purchase order.

Probably the cause could be the price has been changed, and the journal entry from warehouse confirmation was posted before the change.

Help document:

Manual Entries for Materials

differences; inventory; warehouse confirmation; goods and services receipt , KBA , SRD-FIN-GL , General Ledger , How To