Inflation Method 
Inflation Method
Definition
See
inflation method.Use
Customizing
You maintain inflation methods in Customizing for Materials Management (MM), by choosing Valuation and Account Assignment
® Balance Sheet Valuation Procedures ® Configure Replacement Cost Procedure ® Global Inflation Settings ® Inflation Methods.Closing
When you come to run the various replacement-cost valuation reports, the system uses the settings in the inflation method assigned to your company code to determine, for example, whether a price change is to be posted, or whether a manual replacement cost change is to be taken into account.