Price difference account (SAP Business One)

The price difference account in SAP Business One

The price difference account is used when the quantity of an item in stock is reduced to zero. It is used to balance the difference between the transaction amount (e.g. from incoming credit notes or purchase returns) and the current cumulative value of the item.

Example:

An item in stock has a quantity of 10 with a unit price of 5.00. The stock check report shows:

Cumulative quantity: 10
Accumulated value: 50,00

Now a incoming credit or purchase return for the same item with a quantity of 10 and a unit price of 4.50 is added. The difference between the original unit price (5.00) and the new unit price (4.50) is 0.50. Multiplied by the quantity (10), the price difference amount is 5.00. This amount is debited to the price difference account to set the accumulated stock value to zero.

G/L account determination for price difference accounts

The settings for the G/L account determination for automatic postings, including the price difference account, can be customised in SAP Business One under the following path:
Administration > Definitions > Financial accounting > G/L account determination.

Versino Financial Suite

the Versino Financial Suite makes the price difference account in SAP Business One more transparent, ensures audit-proof documentation and noticeably improves controls and analyses via the Versino Financial Cockpit - especially for complex warehouse and price structures and in conjunction with audits or the annual financial statements.