Value Changes in Inventory Management 
Value Changes in Inventory Management
Use
Most goods movements in Inventory Management lead to changes in stock quantity and therefore in stock value: In the case of goods receipts, the stock value increases and in the case of goods issues, the stock value is reduced.
Features
For materials valuated at a moving average price, the material price can also change in the case of
goods receipts for purchase orders. This is the case if the purchase order price differs from the material price. Planned Delivery Costs for a purchase order are also included in valuation when goods are received. When the goods receipt is posted, provisions are created for planned delivery costs; thus the material is immediately valuated at the expected price. A subsequent debit/credit when the invoice is received is only necessary if there are variances between the stipulations of the order and the invoice.It is also possible to post the net value of goods received. In this way, cash discounts that have been agreed upon are taken into account in valuation at this point. This means that when a goods receipt is posted for a material with moving average price control, the value of the order minus the cash discount is debited.
Material price changes can also occur during the following transactions in Inventory Management:
See also:
Moving Average Price: Value Calculation