Market Price Determination
Use
You use this program to revaluate materials that you have procured externally or those produced in-house for which you have a valid price. The system searches through various system documents to determine material replacement costs based on real market prices. In most cases, you adjust materials for the previous period only and carry over price changes to the current period.
The program determines replacement costs of materials for which a market price
revaluation method is specified. If the system does not find a valid market price, then inflation adjustment by means of an index is necessary. In this case, you must run the Inflation Index Adjustment program.Prerequisites
If you want the system to include delivery costs and credit memos when it calculates the material's replacement cost, they must be entered in Logistics Invoice Verification (MM-IV-LIV) with reference to the original material invoice. In addition, in the inflation method, you must specify which delivery costs are to be taken into account when the Market Price Determination program is run.
Features
To access the program, from the SAP Easy Access screen, choose Logistics
® Materials Management ® Valuation ® Balance Sheet Valuation ® Replacement Cost Valuation ® Market Price Determination.Selection
On the selection screen, you specify:
If you require it, this program enables you to revaluate materials that are subject to
You cannot revaluate materials that are handled in batches.
You can enter dates in the current or previous posting period, as described below. Both the start date and the end date must fall within a single period. If you enter dates in the current period, the end date must be before the current date.
If you select Update run, the system updates material master fields and
Running the Program in Update Mode
In most cases, you run the Market Price Determination program for the previous period. If you run it in update mode and a valid market price is found, the system updates the material master as follows, under Previous period:
The replacement cost is always shown in the local currency. If a currency conversion takes place during replacement cost calculation, the original currency of the price source is filled in the Orig. currency (Original currency - previous period) field.
The system sets the end date that you specified on the program selection screen.
Likewise, the system sets the end date – regardless of whether or not a valid price is found.
In addition, if the appropriate Customizing settings are made, the system posts a price change in Financial Accounting, and updates the material's valuation price.
If you need to run the Market Price Determination program for statistical purposes, you can also run it for the current period.
If you manually change a material's replacement cost in the current period and you want to subsequently adjust the material, we recommend that you first close the current period and then run the Market Price Determination program for the previous period. Then carry over the price change to the current period.