Standard Price & Moving average Price

Question

please give some detailed info about:
1. where we use the price control " Standard Price".
2. where we use the price control " Moving average Price".
regards
Piyush

Answer 1

Hye
Goods Receipts/Invoice Receipts  for Purchase Order
Transaction OMW1 allows you to set whether the Price Control is a mandatory "S" or "V".
V indicate that you want the system to value the stocks with the latest price.
S indicate that you want the system to value the stocks with a fixed price method.
Price Control V - Moving Average Price
Assume Material Master current price is 10
Goods Receipts for Purchase Order - Movement Type 101
u2022     Material Document Posting created - inventory increases 
u2022     Accounting Document Posting created 
o     Debit      12345   Inventory      12 
o     Credit     67890   GR/IR          12 
o     New Moving Average Price = ( GR value + Total value ) / ( GR quantity + Total stock )
Invoice Recipts for Purchase Order - MR01
u2022     Accounting Document Posting created 
o     Debit      67890    GR/IR          12 
o     Debit      12345    Inventory     3 
o     Credit     45678   Vendor        15 
o     New Moving Average Price = ( Inventory difference of 2 + Total value ) / ( Total Stock)
Price Control S - Standard Price
Material and Accounting Document is the same.
The one with the lower value will be posted with a price variance entry.
Goods Receipts for Purchase Order - Movement Type 101
u2022     Material Document Posting created - inventory increases 
u2022     Accounting Document Posting created 
o     Debit      12345   Inventory           10 
o     Debit      23456   Price Variance   2 
o     Credit     67890   GR/IR               12 
o     No change in Standard Price
Invoice Recipts for Purchase Order - MR01
u2022     Accounting Document Posting created 
o     Debit      67890    GR/IR                 12 
o     Debit      23456   Price Variance     3 
o     Credit     45678   Vendor                15 
o     No change in Standard Price
General Ledger Account Configuration
Transaction OMWB - Automatic posting for inventory
Inventory posting                                     BSX
Goods receipt/inv.receipt clearing acct     WRX
Cost (price) differences                            PRD
Transaction XK03 - Account Payable Vendor Master
Tick Accounting info. and hit the Enter key
Field name    Reconcil.acct     45678 
thx