Price Levels: Example

You determined the lowest price based on market prices, range of coverage and rate of movement. For some materials, you also entered physical inventory prices derived from data not available in the system.

You also carried out LIFO valuation and inventory costing in the system and updated the results in the material master record.

Material Master Record

To display the values of lowest value determination based on market price in the list of results, you assign tax price 1, commercial price 1 and commercial price 3 to price level 1.

You assign the results of lowest value determination based on range of coverage and movement rate to price level 2.

Level 3 is based on the results of LIFO valuation.