Normal Stock of a Material is 100 PC and the Total Value is 1000 INR. What are the accounting entries when the stock of 10 PC is transferred from Normal to Project Stock (412 Q) ?


Please find below note points before answering the question

Note:

  1. Material price control is V- Moving Average Price
  2. Project Stock (Respective WBS) is 0 at the time of Stock Transfer
  3. Above Stock Transfer is happening within same storage location or between two storage locations within a Plant

The correct Answer for this Question is Option 1 : Stock Account 100 Debit and Stock Account 100 Credit

This process is special and having accounting entries although the stock transfer is happened within same plant. Because the stock is moved from Normal Stock to Project Stock. In this case, Project Stock is 0 so the value of generated Project Stock is taken from Normal Stock price so we see the accounting entries as 100 which is equal to normal Stock. I hope it is clear. I will share one more question for the scenario where the Valuated Project Stock is available

FYI, No accounting entries are available for the transfer of normal stock within a same Plant (Valuation Area)

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