Valuation of Materials 

Use

In Material Costing

For each BOM item that is relevant for costing, the system decides the following:

In Reference and Simulation Costing

For each material, the system decides whether the costs should be calculated using a price from the material master record or from the purchasing info record.

Features

You determine which price is selected for items such as raw materials or purchased parts by defining a valuation variant in Customizing for Product Cost Planning and assigning it to the costing variant. The valuation variant contains a search sequence that can have a maximum of five prices. You can select prices from the material master and purchasing info records. For the cost estimate, the system searches in the sequence specified for these prices.

You can access various prices in the material master record, such as:

For prices from the purchasing info record, enter strategy L and create a separate strategy sequence for prices from purchasing info records. You can access various prices in the purchasing info record, such as net or gross quotation prices, and net or gross order prices. For more information, see Determining Vendors.

You can also access a manually entered cost component split ( Additive Costs).

The price for non-stock items is taken directly from the BOM. (See Bills of Material in Costing)

You have defined the following strategy sequence for material valuation:

  1. Planned price 1
  2. Standard price
  3. Moving average price

If the system finds a value in the field Planned price 1, it transfers this value to valuate the material. If no value is found there, the system uses the value in the field Standard price. If there is no standard price for the material, the value in the Moving average price field is used.

See also:

Implementation Guide (IMG) for Product Cost Planning

If you use the Material Ledger component, you can find more information about valuating materials under Actual Costing/Material Ledger (CO-PC-ACT) in the following sections:

For more information about material valuation in the SAP System, see Material Valuation in the SAP System.