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ASKANEWQUESTION

POpriceandstandard/movingaverageprice
inmaterialmaster
jcaskedApr15,2007|Replies(1)

hi,
whatsthedifferentbetweenthestandardprice/movingaveragepriceinmaterial
masterandtheprice(PB00)inPO?asthepricebetweenthesetwowillbemoveto
pricevarianceaccount.plsadvice

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1Reply

MovingaveragepricevsFIFOorLIFO
FreeofChargePurchasingandFreeofChargeSalesw/
0

MICHAELJONESrepliedApr15,2007

Thestandardprice/movingaveragepriceinmaterialmasterisusedto
valuation/determinethevalueofyourinventory.Thepriceonthe
purchaseorderisthebasepricethatyouactuallypayfortheinventory.
Thepurchaseorderpriceshouldbepulledfromtheinforecord.Thesecan
sometimesbeoutofsync.Ifthematerialisvaluedatastandardprice,
thedifferencebetweenthepurchaseorderpriceandthestandardprice
willgotoapricedifferenceaccount.Ifthematerialisvaluedata
movingaverageprice,thedifferencebetweenthepurchaseorderpriceand
themovingaveragepricewillNOTgotoapricedifferenceaccount.The
movingaveragepricewillsimplybeadjusted.
Weuseasimpleruleofanymaterialpurchasedexternallyisvaluatedata

ValuatedStock

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movingaverageprice.Anythingproducedinternallyandplacedinto
inventoryisvaluatedatastandardpriceacrossallplants.
Hopethishelps.
MichaelJones

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Startanewthreadhere

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