Posting Quantity and Price Variances
The account movements made when quantity and price variances occur depend on the type of price control defined in the material master record, in the same way as for regular price variances.
For the posting selected with an asterisk (*), the following must be considered:
In the case of a material subject to moving average price control , the stock account can only be debited or credited in accordance with the actual stock level. If the material stock available is less than the quantity invoiced, the stock account is only debited or credited with the invoice difference for the actual stock balance (stock balance x price difference).
In the case of a material subject to standard price control , this posting would be made to the account "Expenses from Price Differences".
Postings in the Case of a Material with a Moving Average Price
Goods Receipt
The material is debited with the purchase order price at goods receipt, that is, with $600 instead of $660.
Invoice Receipt
When you enter the invoice, this $60 has to be subsequently debited.
Goods Receipt at a Later Time
The GR/IR clearing account is cleared when the expected goods receipt of 40 pieces for $440 arrives. The offsetting entry is then posted to the stock account.
See also: