ML accounting doc type

Question

Hi all,
While ı post a GR for PO two accounting docs are created. WE and ML docs type.
The material ledger is active and the material is valuated at moving avg price. The system post price difference in WE doc and than back to the stock in ML doc. is it true?
For example
po quantity : 2 pcs
Po price:     5
MAV:   4
GR 2 pcs
Accounting doc:  WE
stock account: 2*4 = 8
GR/IR:                  = -10
Price difference      = 2
ML Document
stock account:        2
Price difference:     -2
can anybody tell me why the system post to price difference account ? When ML document type is created? İs it about parallel currency? In GR the price differences is created for standart price ı think.
thanks
Edited by: Nursa on Apr 13, 2008 8:39 PM

Answer 1

If you have ML active, the postings during GR happen as follows:
Material Moving Average Price: USD 5
PO Price: USD 6
You do a GR for 10 PCs
Expected Posting
Dr Stock USD 60 (10 @ 6)
    Cr GR/IR 60
With ML, it posts the first material document as if the material had a standard price of 5 (the MAP before the GR) and corrects it in the second. So you get:
Material Document 1:
Dr Stock 50 (10 @ 5)     
Dr Price Diff 10
     Cr GR/IR   60
Material Document 2:
Dr Stock 10
     Cr Price Diff 10
The net effect is Dr Stock 60 and Cr GR/IR 60. But this is how ML works.
Now, for example, the new MAP is USD 5.50, the next GR will have a posting as if the material has a standard price of 5.50.
Hope this explains,
Lakshman