Lowest Value Determination: Loss-Free Valuation You may need to devaluate materials sold by your company if they will probably not fetch the material price when they are sold. For example, if the demand for a material diminishes because it is no longer the latest technology, you can only sell this material at a loss compared to the material price.
In the system, there is currently no procedure within this function for automatically determining a realistic selling price for a material. Enhancement NIWE0003 is provided for this purpose. In the customer exits in this enhancement, you can define how the system is to determine the sales prices.
When the system carries out lowest value determination for loss-free valuation, it compares a selling price according to its own rules with one of the inventory prices in the material master record.
The lowest of these can be updated in the material master as the material price, one of the inventory prices, or as a valuation alternative.