When a stock material has a standard price, which accounts are updated at goods receipt if the purchase order price is higher?

When a stock material is received and has a standard price, the system updates specific accounts to reflect the transaction, including the GR/IR (Goods Receipt/Invoice Receipt) account. When the purchase order price is higher than the standard price, this creates a price difference that is accounted for. In this scenario, the GR/IR account records the value of the goods received, which includes the discrepancy due to the higher purchase price.

The GR/IR account serves as a temporary holding account that is essential for managing the timing differences between receiving goods and processing invoices. It ensures that the organization's financial records accurately reflect the transaction until payment is made or further adjustments are processed.

The price difference itself is also recorded, but the question specifically asks about the accounts updated at goods receipt, making the GR/IR account the most relevant in this context. This highlights the critical role of the GR/IR account in financial accounting within Sourcing and Procurement processes. Other potential candidates like stock will not be directly updated with the price difference until subsequent processes resolve the pricing adjustments.