What happens to the Material Master price when posting a goods receipt at a price different from the MAP?

When a goods receipt is posted at a price that differs from the Moving Average Price (MAP), the MAP will adjust to reflect the new price based on the quantity received. The Moving Average Price is a dynamic value that is recalculated whenever there is a goods movement that affects inventory valuation.

When the goods receipt is processed, the system takes into account the quantity and price of the newly received materials. It recalculates the MAP by considering the total value of inventory divided by the total quantity on hand, which allows the MAP to maintain an accurate reflection of the average cost of inventory. This adjustment ensures that the company's financial records reflect the current cost of goods purchased. Therefore, the correct answer highlights that the MAP changes when goods are received at a price different from the current average, enabling better financial tracking and reporting.