If the amount on the invoice is different from the standard price of the material purchased, price differences arise when you post the invoice receipt. This difference is also reflected in Profit Center Accounting.

You purchased one unit of material M2 from plant 01 at 1700.00, but the standard price of this material is 1500.00. The profit center of the material is P200.

The GR/IR account is the clearing account for goods received and invoices received.

The expense from price differences is thus assigned to profit center P200.

If your price difference account is defined as a cost element, the amount is posted to the profit center of the corresponding CO object. However, this is normally not desired. Thus you can use automatic account determination to find a profit center based on the valuation area, cost center, or order.

If the price difference account is not a cost element, the price differences are assigned to the profit center of the material purchased.