Material Stock Valuation
I have an issue with my client. The client wants the material stock to be valuated at standard price. In the month there would be issues and reciepts of stock at the standard price. In such cases, system by default post the difference to P&L Accounts assigned.
However, now at the month end, the user wants to load the material with the variances. However, the system will debit or credit the price difference account and update the stock value accordingly. How do we account for the issues and reciepts during this period for the material.
As per the client, the variances from the standard postings are a violation of accounting principle according to which all issues and reciepts should be valuated at actual fair price