Consolidating intercompany inventory
As PPV, is an indicator of the deviation of Purchase Price from the Standard Price of the product, the regular occurrence of PPV, for a particular goods, indicates, that the goods has not been costed properly. Party transaction or from an intercompany transaction.
It helps in keeping track of the intercompany ppv easily.
Although with standard SAP, we don’t have a configuration catering to this need, we can use custom development or substitution to cater to this need.
In Real Time scenarios, it’s not always the case that the PO Price is in sync with the Standard Product Cost and/or the Vendor invoice amount. Purchase Price Variance is generally the difference arising out of a GR and/or IR, as compared to the PO price. And hence it amounts to loss of 200 USD, which is booked to the PPV account.
Let’s say it has one material in the line item,whose standard product cost is 1000 USD. Point to note is that, GR generally happens at a standard price and the GR IR clearing always happens atthe PO price. What this means practically is, a goods whose price is 1000 USD in the books of the company, has been purchased at a higher price that is1200 USD.
You use trees to define the relationships among business units in a consolidation, creating a separate consolidation tree for each configuration.
Included in each consolidation tree are the business units being consolidated and the to which eliminating journal entries are directed.Prerequisites can be the PO Document type as an intercompany type, andthe vendor as the IC vendor.Then the GL account can be substituted by thefollowing two ways.The balance sheet for Consolidated Manufacturing lists its United States investment as an asset.Consolidated Manufacturing also owns several buildings used by subsidiaries that record the payment of rent to corporate headquarters through intercompany accounts.The following example shows such a transaction when company B0002 buys software for company B0001: When the transactions are exclusively within the organization, you can eliminate the whole transaction when you set up your Consolidations process.Tags: Adult Dating, affair dating, sex dating