Posting Price Variances 

Use

When price variances occur, the type of price control defined for the material determines how the difference is posted. This is defined in the material master record.

There are two types of price control in the SAP system:

If a material is managed at a standard price, the value of the material is always calculated using a fixed price stored in the material master record. When goods are received, the value of the receipt is calculated from the price in the material master. Variances at goods receipt or invoice receipt are posted to a price difference account.

For more information on postings when price variances occur, see Example: Material with Standard Price.

If a material is managed at a moving average price, the price of the material can change. It is calculated by dividing the current total value by the current total quantity of the material. It changes if the current material price differs from the delivered cost at goods or invoice receipt. Variance are posted to the stock account, with one exception: If the stock of material is less than the quantity specified in the invoice because goods were withdrawn between goods receipt and invoice receipt, then the price variance for the missing quantity is posted to a price difference account.

For more information, see:

Material with MAP with Stock Coverage

Material with MAP Without Stock Coverage