Where is Cost Derived When Doing Goods Receipt

Explan what are the cost account when doing the goods receipt. For example when doing GR, system post as follows.

Dr Stock (is this the cost of sales?)
Cr GR/IR (what exactly is GR/IR)

and when do IV it post

Dr GR/IR
Cr Vendor etc.

Goods Receipts/Invoice Receipts  for Purchase Order:
Transaction OMW1 allows you to set whether the Price Control is a mandatory "S" or "V". 
- V indicate that you want the system to value the stocks with the latest price. 
- S indicate that you want the system to value the stocks with a fixed price method. 

Price Control V - Moving Average Price 
Assume Material Master current price is 10 
Goods Receipts for Purchase Order - Movement Type 101 
Material Document Posting created - inventory increases  

Accounting Document Posting created  
Debit      12345   Inventory      12  
Credit     67890   GR/IR          12  

New Moving Average Price = ( GR value + Total value ) / ( GR quantity + Total stock ) 

Invoice Recipts for Purchase Order - MR01 

Accounting Document Posting created  
Debit      67890    GR/IR          12  
Debit      12345    Inventory     3  
Credit     45678   Vendor        15  

New Moving Average Price = ( Inventory difference of 2 + Total value ) / ( Total Stock) 

Price Control S - Standard Price 
Material and Accounting Document is the same. 
The one with the lower value will be posted with a price variance entry. 

Goods Receipts for Purchase Order - Movement Type 101 
Material Document Posting created - inventory increases  

Accounting Document Posting created  
Debit      12345   Inventory           10  
Debit      23456   Price Variance   2  
Credit     67890   GR/IR               12  

No change in Standard Price 

Invoice Recipts for Purchase Order - MR01 

Accounting Document Posting created  
Debit      67890    GR/IR                 12  
Debit      23456   Price Variance     3  
Credit     45678   Vendor                15  

No change in Standard Price                *-- Praveen                          

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