Updating the Standard Prices

Use

You can update the results of the standard cost estimate in the material master record as the

If you

Future standard price

Mark the standard cost estimate

Current standard price

Release the standard cost estimate

Previous standard price

Release a new standard cost estimate. The current standard price becomes the previous standard price.

For more information, see Costing Sequence .

Integration

You can use the results of the standard cost estimate to valuate the materials for standard prices (see graphic). When you release the standard cost estimate, the price in the material master is updated as the standard price and the materials are revaluated. From this point on, all the material movements are valuated at the new price. However, this applies only to materials with S price control.

Costing can access the future or current standard price in the material master for material valuation purposes, provided you have defined the appropriate strategy in the valuation variant in Customizing for material valuation (see graphic). For more information, see Define Valuation Variants in the Implementation Guide for Product Cost Planning .

Prerequisites

To update the standard cost estimate results as the standard price in the material master record, the following conditions must be met:

  • The cost estimate has the status KA: Costed without errors . Only the results of cost estimates without errors can be updated. For more information, see Message Logs and User-Defined Message Types .

  • The costing results have been saved to the database. To be able to save a cost estimate, you must ensure that the indicator Saving allowed is turned on in the costing variant . For more information, see Saving Material Cost Estimates .

  • The setting has been made to update the costing results as the standard price. For this, the indicator Standard price indicator must be turned on in the costing type .

  • In addition, the costing type must also specify that the date of costing is saved to the database, and that this date is always the start of period .

For more information about Customizing, see Preparing for Material Costing .

  • The period of validity of the cost estimate ( Costing date from ) must correspond with the current period in the material master. You cannot update the standard price for periods that have elapsed. To release the costing results, you must wait until the relevant posting period has arrived. For further information, see the following:

Features

The following graphic provides an overview of updating the costing results as the standard price:

To set a new standard price in the material master, you must mark and release the standard cost estimate. Before you can mark and release a standard cost estimate, you must allow standard cost estimates to be marked and released in a company code.

If you mark a standard cost estimate for a material, the price calculated in the standard cost estimate is transferred into the material master record as the future standard price (see graphic). However, the materials with "S" price control continue to be valuated with the current standard price (see graphic).

If you release a standard cost estimate for a material, the marked price is transferred into the material master record as the current standard price for the current period. This price is then active for external accounting. The materials with "S" price control are valuated with the new standard price. The current standard price becomes the previous standard price (see graphic).

Note Note

You can repeat the marking at any time. However, this can only be done once in a period. For this reason, you should check the costing results before marking and releasing. To do this, use the reports in the Product Cost Controlling Information System.

You can use the Information System to make comparisons, such as using a price from the material master, or the future or current standard price, to the costing results. This enables you to correct any variances before the materials are valuated with the new standard price.

Once you have released the cost estimate, you cannot create a new standard cost estimate in this period. Although you can delete a released cost estimate, the materials are still valuated with the released standard price. When a current standard cost estimate is deleted, the previous standard price no longer becomes the current standard price. To determine a new standard price, you have to carry out costing, marking and releasing afresh.

Marking, releasing, and marking allowance are protected by authorization checks. The person authorized to execute these functions must enter the authorization object K_FVMK (CO-PC: Release/marking product costing) in the user master record.

End of the note.

See also:

If you use the Material Ledger component, you can find more information about valuating materials and group costing/multiple valuation approaches 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 .