SAP material price postings-GL impact

If Material Price is
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

• Material Document Posting created - inventory increases
• Accounting Document Posting created
  • Debit      12345   Inventory      12
  • Credit     67890   GR/IR          12
  • New Moving Average Price = ( GR value + Total value ) / ( GR quantity + Total stock )

Invoice Recipts for Purchase Order - MR01

• Accounting Document Posting created
  • Debit      67890    GR/IR          12
  • Debit      12345    Inventory     3
  • Credit     45678   Vendor        15
  • 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

• Material Document Posting created - inventory increases
• Accounting Document Posting created
  • Debit      12345   Inventory           10
  • Debit      23456   Price Variance   2
  • Credit     67890   GR/IR               12
  • No change in Standard Price

Invoice Recipts for Purchase Order - MIRO

• Accounting Document Posting created
  • Debit      67890    GR/IR                 12
  • Debit      23456   Price Variance     3
  • Credit     45678   Vendor                15
  • 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