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Material price analysis shows the valuated transactions and the results of material price determination with price and exchange-rate differences for a given material in a plant in a period within a price determination structure. Data is displayed according to process categories and procurement alternatives. The line items can be found under the procurement alternatives.


With price determination control 3, the material ledger data is divided into the following categories:

The transactions controlled through the movement types in Customizing are displayed in the category Other inward/outward movements.

With price determination control 2, valuation-relevant transactions are listed in the price history. If these transactions are displayed in the price determination structure, then the category Price changes also appears in the display.

This graphic is explained in the accompanying text


From material price analysis, you can branch to a multilevel procurement or multilevel consumption in the actual BOM. From the actual BOM, you can branch to the activity price display. In the activity price display, you can compare the plan prices with the actual prices in the currencies carried by the material ledger. The actual price before multilevel price determination corresponds to the preliminary valuation. The actual activity prices are only displayed after multilevel price determination if the indicator Activity update relevant to price determination is set in Customizing for Actual Costing/Material Ledger.


Note Cost Components

The Cost Components report shows the data of material price analysis broken down into cost components. The data is displayed in accordance with the period status in all set currencies and valuations.


The actual cost component split is active.

For more information, see Actual Cost Component Split.


Note  Plan/Actual Comparison


This report analyzes variances of materials in mixed costing. In the pane Variances of Alternatives, you can analyze the price variances that arose at the level of procurement alternatives. In the Mix Variances pane, you analyze the mix variances caused by the changed mixing ratios.

The display shows cost components in accordance with the period status in all selected valuations.



You can call up the Plan/Actual Comparison view for the following purposes:

The report that explains the variances of procurement alternatives contains sufficient data to calculate these variances.

Variances = Actual value Target value

The field Diff.% shows the variance as a percentage of the target value.

The report that explains the mix variances prepares the data for calculation. The mix variances for the procurement alternatives that were costed in mixed costing are calculated with the following formula:

Mix variance = (Actual quantity Target quantity) x (Planned price Standard price)

If one or more procurement alternatives were not costed in mixed costing, but the goods movements for the alternative were entered, the following formula is used for the mix variances:

Mix variance = (Actual quantity Target quantity) x (Actual price Standard price)

These formulas are valid only at the level of procurement alternatives. You cannot use these formulas for summarized data at the level of processes and categories. In the case of summarization, the variances are the sum of the variances per procurement alternative. Mean values are calculated for the prices.

The variances shown in the price determination structure are the sum of the mix variances and the variances for each procurement alternative.

The reports for the split variances for each procurement alternative and for split mix variances show the variances by cost components.

For more information, see Actual Cost Component Split.


Note Special Cases

Note You use transaction-based material price determination and change a price in the previous period. In material price analysis, the ending inventory is shown at the changed price. However, since the price had not yet been changed at the beginning of the current period, the initial inventory of the current period still shows the valuation at the original price. But the current period does show the price change of the previous period.


Note If, based on a stock coverage check, not all cumulated differences can be distributed to consumption or final inventory with price determination control 3, these are displayed in the category Not distributed.


Note Price differences are assigned to consumption through single-level material price determination. If these differences are not included in multilevel price determination, or if multilevel price determination has not yet taken place, they appear in the data display under Not allocated.


Caution If you change the price control, such as from 2 to 3 or from 3 to 2 and back to 3, this can cause the following inconsistencies in material price analysis:

From the subsequent period onward, the display structure of material price analysis again corresponds to the documents.

Caution You should only change the price determination setting when it is absolutely necessary.

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