In the SAP System, there are two types of price control:
These two types of price control differ in how they handle price variances resulting from goods receipts or invoice receipts.
You determine the price control that should be used for a material when you create the material and enter the accounting data for it. You enter one of the following indicators in the Price control field to determine how the price is controlled:
Valuation using a standard price has the following features:
If a material is assigned a standard price (S), the value of the material is always calculated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in valuation.
For more information, seeStandard Price: Value Calculation.
Moving Average Price
Valuation using a moving average price results in the following:
If a material is assigned a moving average price (MAP), the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account; as a result, the moving average price and the value of the stock change.
The moving average price displayed in the material master record is rounded off. For valuation calculations, the system always uses the exact price (stock value / stock quantity).
For more information, seeMoving Average Price: Value Calculation.
See also:Changing the Type of Price Control