MAP Price Difference With And Without Stock Coverage
If the stock of a material is less than the quantity specified in the invoice because a withdrawal took place between goods receipt and invoice receipt, the stock account is only debited or credited for the actual stock. The remaining amount is posted to a price differences account.
Since only 80 pieces of the material are in stock at the time of invoice receipt, the price difference is debited to the material for 80 pieces only, in this case:
80 pieces x $ 0.10/piece (price difference) = $ 8.00.
The remaining variance (20 pieces x $0.10 per piece = $2) is posted to the account “Expenses from Price Differences”.