Determining the Lowest Value Based On Market Prices

Note Note

Because of the volume of data involved, you should only determine the lowest value using background processing.

End of the note.

Procedure

  1. Choose Start of the navigation path Valuation Next navigation step Balance Sheet Valuation Next navigation step Determine Lowest Value Next navigation step Market Prices. Next navigation step The system displays selection screen. End of the navigation path

  2. Enter data as required: the company code in question, the key date, and the materials for which you want to determine the lowest value. Narrow down your selection using material numbers, valuation areas, valuation types, material types, valuation classes, and material groups.

  3. In the screen box Price Comparison , specify the prices that the lowest value comparison is to be performed for.

  4. Under Comparison Price, you can select one or more prices from the Phys. Inv. Prices and Valuation Alternatives tab pages. The method thus determines the comparison price as the minimum of all specified prices and valuation alternatives.

  5. Choose Market Price . The system displays a dialog containing the possible price sources.

  6. Select the price sources to be used for lowest value determination.

  7. For each price source that you select, check the period under review, the priority, and the exchange rate comparison indicator (which controls how the price sources are translated from foreign currency) and make any necessary changes. If you use Receipt Prices or Order Prices as sources, the strategy you select determines whether the system should determine the lowest or the last prices. Choose to confirm your entries.

  8. Choose Comparison Price . The system displays a dialog box in which you specify the Comparison Price .

The current material price is proposed as the Comparison Price in the standard configuration. You can choose another comparison or No Comparison Price . Choose to confirm your entries.

  1. You can update the material master with the results of lowest value determination. To do this, select the field Database Update in the screen box Update Material Master . You can change the material prices or the physical inventory prices in the material master.

  • If you want to change the material prices, select Change Material Prices . The system displays a dialog box, in which you select if:

    • A batch input session should be generated for the price changes

    • The prices should be changed directly when valuation is carried out

    • You do not want the material prices to be changed, in which case you need to select No Update .

Choose to confirm your entries.

  • Choose Update Prices.

The system displays a screen with two tab pages. SAP recommends that you only process one of these tab pages.

  • On the Phys. Inv. Prices tab page, select the price field of the lowest value price in which the data is to be posted. If you want to delete prices in other price fields when carrying out the update, select the Reset field.

  • On the Valuation Alternatives tab page, select the price indicator that indicates the valuation alternatives to be updated.

Note Note

Choose to confirm your entries.

You should only trigger the automatic price change function if you do not want to carry out further lowest value determinations with price changes.

End of the note.

  1. Choose List format and specify the type of print list that you require.

  2. In the header on the initial screen, choose Valuation Level. You can select whether lowest value determination is to take place at Valuation Area Level or Company Code Level .

  3. If you carry out lowest value determination based on market prices at company code level, you can set individual valuation prices for a material in relation to one another on the Comparison Price screen. For example, you can use the lowest price in all valuation areas as the comparison price for the entire company code.

  4. Choose Execute .

Result

A list of materials with the lowest market prices determined is generated.

A certain number of individual prices for each material and the document from which the system retrieved the price information are specified. The lowest market price is also displayed for each material. If this is larger than or equal to the comparison price or the lowest market price could not be determined, the system enters the comparison price in the New Price column.

If you set the automatic price change function, the name of the batch input session or the numbers of the price change documents posted appear at the end of the list.

You can analyze the results using the Schedule Manager and the messages using the application log.

See also:

Lowest Value Determination Based On Market Prices

Determining Lowest Values

Balance Sheet Valuation (MM-IM-VP)