Revaluation Method 
Revaluation Method
Definition
A setting that controls how the system revaluates a material – on the basis of its market price or using an inflation index. If you want stock to be adjusted by its market price, you must specify which price is to apply – the lowest, highest, or latest price found in the
price sources. This value is taken into account when you execute the replacement-cost valuation reports Market Price Determination and Inflation Index Adjustment, as described below.Integration
Market Price Determination
If the system is to revaluate a material using the latest price, it looks at the following dates; they must fall within the date range entered on the selection screen for the price sources:
Document |
Date Used |
Invoice |
Posting date |
Purchase order |
Document date |
Contract |
Start or end of the validity period |
Info record |
Price condition date |
Manual replacement cost change (if the appropriate setting is defined in the inflation method) |
Date of change |
If the system finds more than one document with the same date, it uses the documents in the following order:
If the system determines more than one document of the same type (two invoices with the same posting date, for example), it uses the document with the highest document number.
Inflation Index Adjustment
This report covers materials that are to be revaluated by an inflation index and those for which a market price could not be found.
See also:
Market Price Determination Inflation Index Adjustment