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 Example: Price Changes

Example 3:

The raw material cocoa is valuated at a standard price of 20 Mxn per kilogram in Period 1 . At the end of the period revaluation takes place: The new standard for Period 2 is 21 Mxn per kilogram. (See 5)

Segment of the Material Price Analysis for Period 2:

The period has begun, but no postings have been made yet. The price changes have been carried out.

 

Quantity

Preliminary valuation

Price differences

Exchange rate differences

Price

Beginning inventory

20 kg

420 Mxn

0

0

21 Mxn

See also: Displaying Material Price Analysis

Postings:

The following postings are made:

No.

Periods

Inventory

Revaluation

1

2

4

1

200

400

200

   

5

2

20

   

20

The revaluation amount of 20 Mxn is recorded in material ledger data and is used for calculation of the actual price.

Accounting View 1 in the Material Master

Period 1: Price control: S price (20 Mxn)

Period 2: Price control: S price (21 Mxn)

See also: Price Changes

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