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Blog
Home General SAP Material price calculation in PO, GR, and Invoice
General SAP

Material price calculation in PO, GR, and Invoice

SAP College March 18, 2022 0 Comments

In this blogpost we will see how material price is calculated in procure to pay process

Price determination at purchase order

At purchase order, material price gets determined automatically. So how does it determine?

Material price is determined in below sequence:

If material is maintained with standard price (S)

  • Then PO will have price from material master

If material is maintained with Moving average price (V), then it will be determined in below sequence:

  • Price from contract
  • From info record
  • Condition record
  • Last PO price (depends on parameter maintained)

Price determination at GR

When goods receipt (GR) is performed, the purchase order price is used in posting corresponding accounting document.

Let’s understand amount calculation in good GR:

When good receipt (GR) is performed, below accounting document gets generated (In case of moving average price):

When good receipt (GR) is performed, below accounting document gets generated (In case of Standard price):

In this case price difference will be posted to transaction key PRD (To assigned GL in OBYC)

Inventory account is always posted with standard price of material maintained in material master.

GR/IR clearing account is always posted with PO price.

When invoice receipt (IR) is performed, below accounting document gets generated (In case of moving average price):

Any price difference will be booked on inventory account (material)

Also Read: Useful reports in Material Management

When invoice receipt (IR) is performed, below accounting document gets generated (In case of standard price):

Any price difference will be booked on PRD transaction key (to GL assigned in OBYC)

So in conclusion, GR/IR prices are always influenced through PO except when material is maintained with standard price control.

When material is maintained with standard price control it causes price difference and then that is posted on price difference account which is maintained in OBYC transaction.

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Read this SAP Help post on same topic for more information.

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