Where a production order is settled to a material account, the amount settled is the difference between the actual costs incurred for the order and the costs credited to the order when the goods produced were delivered to stock (see section Delivery to Stock).

The order is credited with the settled costs. Following the credit posting, the order has a balance of zero. The offsetting entry for this credit is made as follows:

• If the Price control indicator in the material master record is S, a price difference account is debited.

• If the Price control indicator in the material master record is V, the total stock value and the moving average price change accordingly.