Anyone who can give information whether price change module in SAP 5.0 will generate GL or Accounting document


Question:
Want to know whether price change in SAP 5.0 really does not generate GL or Accounting documents upon execution of price change. I am currently working on this analysis (newly hired as auditor to my current employer) however our FICO team leader says that price change execution will not generate any accounting documents in relation to the existing stocks upon execution of change. Since our company is into retail and we are currently using MAP with perpetual inventory system execution of change will cover both cost and SRP which in effect change our gross margin but the change in cost will only take effect upon receipt of new inventory. Does the issue has something to do with our GL configuration?

Answer:
check this documentation:

http://help.sap.com/saphelp_erp2005/help...

Material Price Change (MM-IV-MP) Locate the document in its SAP Library structure

Purpose

Material Valuation is part of Materials Management (MM). This includes the following application areas:

* Purchasing
* Inventory Management
* Logistics Invoice Verification

Material Valuation determines or records the stock value of a material. The stock value is calculated using the formula:

Stock value = stock quantity x material price

Thus, if the stock quantity or the material price changes, the stock value changes.

Implementation Considerations

Material Valuation is not an independent application area, since most Material Valuation functions take place automatically in the SAP System. Depending on how a company is structured, tasks that have to be carried out manually belong to either Inventory Management or Invoice Verification.

Integration

Material Valuation represents a link between Materials Management (MM) and Financial Accounting (FI), since it updates the G/L accounts in Financial Accounting.

Features

Material Valuation serves the following purposes:

* Adjusting material prices to market prices
* Performing revaluations
* Executing balance sheet valuation

See also:

Control of Material Valuation

Valuation Structure

Changes in Material Valuation

Price Control

Structure link Balance Sheet Valuation (MM-IM-VP)
Do you really think that AnswersRoom.com is the right forum to ask this question? Don't you think you should be talking to the client and trying to understand the process? This may be a process issue and not a system issue. It is probable that inventories are held at cost so that a change in price will affect the revenue as it taken, but will not affect the unsold inventory valuation.
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