Hi,
We would like to devalue a material by transferring it to another material with a lower standard price because this material has lost its value due to some reason. The example is as follows :-
Material A = US50
Material B = US30
Although material B is very similar to material A, the quality of material B is inferior to material A, hence using a lower standard price. So when i move the quantity from A to B, there is a price difference of US20 which is booked to the price difference accounts.
Now the problem is, material ledger is actualizing this back into the ending inventory of Material B at month end. This is not correct because then the material B final value will be back to US50 which is not supposed to be the case.
How this situation should be handled when material ledger is activated?