• Goods Receipts.
• Goods Issues.
• Transfer Postings (for example, a stock transfer between two plants or a transfer posting from one material to another).
• Postings in Invoice Verification.

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Characteristic of Price Control “S”:

• All stock postings are made at a standard price.
• The system posts all differences from the standard price to an account “Expense/Revenue from price difference”.
• Exact values are available for cost accounting / controlling purposes (All goods issues, such as issues to a production order, are valuated at the same standard price. This allows better analysis of the costs of production orders).
• In the accounting view, we can display differences between the delivered price and the standard price.
• We can change material prices if required (generally at the end of period). This causes the system to revaluate the total stock for a valuation area.

Posting at Standard Price.

Characteristic of Price Control “V”.

• Receipts are valuated at their actual price (as per purchase order, invoices,…)
• The system modifies the price in the material in the material master according to the delivered price.
• Issues are generally valuated at the current material price.
• The data used for cost accounting / controlling purposes therefore contains price fluctuations.
• Only in exceptional circumstances does the system post at a difference to the “Expenses/Revenues from price differences” account (The system makes a posting to an “Expenses/revenue from price differences” account for a material valuated at a moving average price only in the case of a debit or credit when the stock coverage in the company code is smaller than the quantity to be debited or credited, e.g.: When we reverse an invoice, the account movements made when the invoice was posted cannot always simply be reversed. For example, if there was sufficient stock coverage when we posted an invoice with a price variance for a material with moving average price, but when we reverse the invoice, there is insufficient stock coverage, the R/3 System posts the price difference in the credit memo to a price difference account, although the price variance was debited to the stock account when we posted the invoice)
• We can change material prices if required (generally at the end of period). This causes the system to revaluate the total stock for a valuation area.

Postings at Moving Average Price.

Receipts to the stock account are posted with the value Quantity x Order price. The moving average price is recalculated after every transaction and is therefore adjusted in line with delivered prices (2)/(4).

Differences between the order price and the invoice price are debited to the stock account, as the invoiced quantity is in stock (3).

The difference between the order price and the invoice price is only posted for the 50 pieces in stock. For the remaining 50 pieces that are not in stock, the difference between the order price and the invoice price is posted to an “Expenses/revenue from price differences” account (6).

You could read our previous article to know the effect of Price Control (S/V) in the Goods Receipt process.