Effect of price control

[Former Member]

Hi all

I wanted to know effects of price control,why we have to take Standard price for inhouse produced materials & moving average for externally procured materials.

What are the effects if we take MAP for inhouse produced material.

Thanks & Regards

Sandeep patil

[Former Member]

Two things

If in house prodcution will be MAP then the variance will not be able to traced out as all the flucttuation will get into MAP bucket..

second.. if stock will not be availabe then at the time of making the GR from production order , it will post to the price differnece account to the extent of stock not avialable as per the MAp principle..

Your COGS will be hit always in diffenret price by whichgross margin will flucutate un organically

Hope it is clear

if find helpfull assign points

Cheers

PK