PPV - How configured in SAP

Being learnt on how PPV is calculated, I know you have one open question as how Price Variance Account/GL was determined?!

Account Determination

PPV Account is determined based on the posting rules maintained in Transaction OBYC (Automatic Postings) for transaction/event key PRD (Price Differences).

Account determination is maintained at Chart of Account level.

Different GLs can be maintained at Valuation Area level.

We can use account modification combination with this, the following modifications are available in the standard system:

- None for goods and invoice receipts against purchase orders.

- PRF for goods receipts against production orders and order settlement.

- PRA for goods issues and other movements.

- PRU for transfer postings (price differences in the case of external amounts)

That’s it..!!

NOTE

- Blog till now gives wider understanding on PPV. The more you dig into details, the more are the complications.

- Considered Audi as an Inventory rather than an Asset. Thought this is not far from reality, if you are a dealer in Audi. 

- Treatment may vary based on the configuration maintained in systems.  

Going further we will know more on PPV...