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 Purchase Account Management

Use

Some countries require companies to manage purchase accounts. This account documents the value that externally procured materials are posted at.

Prerequisites

Function

Customizing Setting

Define whether purchase account management is active for the company code.

Start of the navigation path Materials Management Next navigation step Valuation and Account Assignment Next navigation step Account Determination Next navigation step Account Determination Without Wizard Next navigation step Purchase Account Management Next navigation step Activate Purchase Account in Company Code End of the navigation path

Define the value calculation that applies to the purchase account.

Start of the navigation path Purchase Account Management Next navigation step Calculation of Value for Purchase Account End of the navigation path

Define whether the system is to create separate accounting documents for the purchase account postings.

Start of the navigation path Purchase Account Management Next navigation step Separate Accounting Document for Purchase Account Postings End of the navigation path

Create the appropriate accounts.

Start of the navigation path Materials Management Next navigation step Invoice Verification Next navigation step Logistics Invoice Verification Next navigation step Incoming Invoice Configure Automatic Postings End of the navigation path

Features

Purchase accounts can be updated in the following ways:

  • At the receipt value

In this case, the exact amount posted at goods receipt to the GR/IR clearing account is posted to the purchase account.

In Invoice Verification, the system only posts to the purchase account if there is a price difference. The system posts this difference to the stock account or to a price difference account, the sum of these two postings is posted to the purchase account.

For more information, see Postings at Receipt Value .

  • At the stock value

In this case, the exact amount posted at goods receipt or at invoice receipt is posted to the purchase account.

In Invoice Verification, the system only posts to the stock account – and therefore to the purchase account and to the purchase offsetting account – if the invoice item meets the following conditions (see Price Variance ):

  • A price variance has occurred

  • The material is subject to moving average price control

  • Stock exists for the material

For more information, see Postings at Stock Value .

Similar to the purchase account, a freight account exists for documenting delivery costs that have been posted for externally procured materials.

If purchase account management is active, the system automatically carries out the additional postings.

Constraints

For settlements of subcontracting transactions, the system does not post to the purchase account nor to the purchase offsetting account. For further information, see Subcontracting in Invoice Verification .