Use

The price control of a material determines whether the material is valuated at the standard price, the periodic unit price, or the moving average price.

The Price determination indicator in the material master determines whether price determination is:

These control parameters are in the Accounting 1 view of the material’s master record.

Default Values in Customizing

You can specify the default price control that is used when a material is created in Customizing under Logistics - General → Material Master → Basic Settings → Material Types → Define Attributes of Material Types.

Under Actual Costing/Material Ledger → Activate Valuation Areas for the Material Ledger, you can specify for each plant which price determination is used as a default when a material is created.

Features

If the material ledger is not active, two methods of price control are available:

For more information about material valuation without the material ledger see MM - Material Valuation under Material Valuation in the SAP System .

If the material ledger is active, the relevance of the price control of a material depends on its price determination indicator in the material master.

Combinations of Price Control and Price Determination

For additional background information, see the following:

Single-Level Material Price Determination

Multilevel Material Price Determination

Transaction-Based Material Price Determination

For additional process flow information, see the following:

Periodic Material Valuation

Multilevel Actual Costing