Stock Shortage in the Current Period

If price variances occur for an invoice for a material subject to moving average price control , the resulting value is debited from the stock account, provided there is sufficient stock coverage for the quantity invoiced. If there is stock coverage for the quantity invoiced in the previous period, but not in the current period, you can post the entire invoice quantity to a previous period, but you must make an adjustment posting for the current period.

Postings for a Material Valuated at a Moving Average Price for Which Stock Coverage Exists in the Previous Period, But Not in the Current Period.

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When you post to the previous period, the value resulting from the price variance (300 pieces x $2/piece) is first debited to the stock account. The stock value changes in the previous period accordingly. In the current period, there are only 100 pieces in stock, therefore the stock account can only be debited $200 (100 pieces x $2/piece). The system automatically posts the $400 difference to a revaluation account. Thus the stock value in the current period increases by only $200.