Normally Price difference concerning MM happens at the time of GR.

The price difference at

the time of MIRO (IV) happens in the case where the invoice is received for a price different
from the PO.

For example:

In the case of a material with Price control as "S" - Standard price

PO price - 100Rs.

Material Master price - 120Rs.

At the time of GR, entry is:

Stock account Dr (BSX) 120

To Price Difference Account (PRD) 20

To GR/IR account (WRX) 100

In case of a material with Price control as "V" - Moving Avg Price

Same Scenario

At the time of GR, entry is:

Stock account Dr (BSX) 120

To GR/IR account 120

Now let's assume that the invoice is received for 130 Rs and we have also accepted the price
change, then the accounting entry at the time of MIRO would be

In case of a material with Price control as "S" - Standard price (Stock of the material is
available or not)

GR/IR account Dr 100

Price Difference Account Dr 30

To Vendor Account 130

In case of a material with Price control as "V" - Moving Avg Price (Stock of the material is
available)

Stock Account Dr 10

Gr/IR Account Dr 120

To vendor 130

In case of a material with Price control as "V" - Moving Avg Price (Stock of the material is not
available)

Gr/IR Account Dr 120

Price Difference Account Dr 10

To vendor 130