Hi Arturo,
Thanks for your new blog, however do you reckon that the PRY of 1500 in August is changing the price back to 500 from 350 which should not be the case...As far as i know the actual valuation of previous month will be reversed in the next period so that the next period material valuation can start in standards.
In your example i am not sure why the actual price of 500 is being used in August op balance to derive the 1500 price difference. This will create a problem because in August closing i see the 1500 is being actualized to bring the price to 500, however assuming if there is no other price differences captured in August, i will expect the actual price = standard price, which is 350. However due to the PRY 1500 the price is set to 500 same as the July actual price.
This is what we don't understand, like how Roidi has explained. Invariably the price difference is haunting us. It would have been great if the actual valuation of previous month do not influence the next month as long as we do not release the price using CKME to the next period.