Price Control Standard Price vs Moving Average Price

There are two types of price control:

Ø      Standard price

Ø     Moving average price

Ø  When a material is valuated at a moving average price, the price changes in line with the delivered costs. If the purchase order price or the invoice price varies from the price in the material master record, the R/3 System posts the difference to the stock account if there is stock coverage for the invoice quantity. As a result, the value and the price of the material change.

Ø  When a material is valuated at a standard price, the R/3 System posts differences between the

purchase order price or the invoice price and the price in the material master record to a price

difference account. As a result, the price in the material master record remains constant.