Example: Single-level price determination
Example 4
For the raw material cocoa a single-level price determination is carried out in Period 1.
The material price analysis shows the following values after the single-level price determination in Period 1.
Quantity | Preliminary valuation | Price difference | Exchange rate difference | Price | |
|---|---|---|---|---|---|
Beginning inventory | 10 kg | MXN 200 | 0 | 0 | MXN 20 |
Receipts | 20 kg | MXN 400 | MXN 42 | MXN 42 | MXN 24.2 |
Other receipts/consumption | 0 | 0 | 0 | 0 | 0 |
Cumulative Inventory | 30 kg | MXN 600 | MXN 42 | MXN 42 | MXN 22.8 |
Consumption Not allocated Production Chocolate | 10 kg 0 10 kg 10 kg | MXN 200 0 MXN 200 MXN 200 | MXN 14 MXN 14 0 0 | MXN 14 MXN 14 0 0 | MXN 22.8 0 MXN 20 MXN 20 |
Ending inventory | 20 kg | MXN 400 | MXN 28 | MXN 28 | MXN 22.8 |
Price differences are assigned to consumption through material price determination. If these differences are not used in multilevel price determination, or if multilevel price determination has not yet taken place, these price differences appear in material price analysis under Consumption/not allocated
.
For more information, see
During price determination, the system carries out the following calculation:
(prelim. valuation + price diff. + exchange rate diff.) / cum. inventory = (600 Mxn + 42 Mxn + 42 Mxn) / 30 pieces. = 22.8 Mxn / pieces
The price control is not changed in the master data. The raw material cocoa is valuated with the standard price. The price calculated through price determination is updated as a periodic transfer price in period 1 and as statistical information in the accounting view 1 of the material master.
Accounting View 1 in the Material Master
Period 1: Price control: standard price: 20 Mxn,
statistically updated moving average price: MXN 22.8
Caution
No postings occur in FI.
No consumption is debited. For this reason, uncalculated price differences that are first entered into the higher processing steps during multilevel price determination appear in the material price analysis after single-level price determination.