Example: Material with MAP with Stock Coverage 

Postings in the Case of Price Variance and Extract from Material Master Record

Goods Receipt

The stock account is posted with the receipt value based on the purchase order price.

The offsetting entry is posted to the GR/IR clearing account.

Value Calculation

The purchase order price is different to the moving average price: At the time of posting, the value in the material master record does not increase in proportion to the stock, so the moving average price in the material master record changes.

Invoice Receipt

The GR/IR clearing account is cleared on the basis of the purchase order price. The offsetting entry is posted to the vendor account based on the invoice price. The invoice price is different to the purchase order price: The variance between the purchase order value and the invoice value is posted to the stock account.

Value Calculation

The invoice price is different to the purchase order price: When you post the invoice, the system corrects the value in the material master record, so the moving average price changes. The stock in the material master record does not change.

If the stock of a material is less than the quantity specified in the invoice because goods were withdrawn between goods receipt and invoice receipt, the stock account is only debited or credited for the actual stock. The remaining amount is posted to a price differences account. For more information, see Material with MAP Without Stock Coverage.