Accounting and Localization mailing list archives


Re: Perpetual Inventory Valuation in Continental Accounting

Davide Corio, Davide Corio
- 02/26/2016 12:23:43
2016-02-26 18:17 GMT+01:00 Quentin De Paoli <>:

Hi community,

recently, a question arose from a customer request which I need to confront to your expertise.

Upon validation of a supplier invoice for a product in perpetual inventory valuation, do we have to have to book the difference between the PO price (inventory valuation price) and the supplier invoice price even if the company is doing continental accounting (no anglo-saxon mode)? If yes, what should be the accounting entries for the incoming shipment and supplier invoice? 

That is mandatory at least here in Italy for some type of companies. And SAP does provide such feature.
Unfortunately i haven't delved into this problem yet, then i don't know what we should book from the accounting point of view.