If you decide to inactivate the periodic weighted average (periodic WA) feature for a part, you are not allowed to have any remaining cumulated price difference or cost variance for that part. Cumulated price differences originate from supplier invoice matching when periodic WA is used. Cumulated cost variances originate from closing of shop orders. To remove any differences before inactivating the periodic weighted average feature, select Remove Periodic WA Difference in the Operations menu, which books these amounts as price differences or cost variances. The same menu option can also be used if you manually want to remove cumulated differences, for instance at a period end. Price differences and cost variances occur when supplier invoices are matched and when you close shop orders.
When you remove periodic WA differences and cost variances, one or more of the following system events might occur:
If the cumulative price difference is positive, postings are created with the debit posting type M19, Price Diff Purch Higher Price, and the credit posting type M18, Purchase. If the cumulative price difference is negative, postings are created with the debit posting type M18, Purchase, and the credit posting type M20, Price Diff Purch Lower Price.
If a cost variance is removed as a result of this activity, it and the variance is positive, postings are created with the debit posting type M49, Negative Diff of Calculation, and the credit posting type M40, Work in Progress. If the variance is negative, postings are created with the debit posting type M40, Work in Progress, and the credit posting type M48, Positive diff of calculation.
Inventory Part
Inventory Part/Costs