Posting Price Changes (SAP Library)

Posting Price Changes

Use

In the Market Price Determination and Inflation Index Adjustment programs, the system can post a price change directly to Financial Accounting (FI), and update the material valuation price in the material master.

Prerequisites

For the system to post a price change:

You must run the program in update mode.
The Post replacement cost indicator must be set in the inflation method assigned to your company code.
Stock must be available.

Features

The system posts the price change resulting from replacement cost valuation to the material G/L account and the offsetting entry to the inflation adjustment account that you have defined in Customizing. In MM, the inflation adjustment account is defined as a specific inflation gain or loss account for definitive adjustments.

The system creates a material document and an inflation adjustment document.

If you run the program for the previous period, the system posts a price change on the last day of the previous period (1). In Customizing for MM, you can also define that the new material price is carried forward to the current period, by choosing Valuation and Account Assignment ® Balance Sheet Valuation Procedures ® Configure Replacement Cost Procedure (Inflation) ® Configure Price Change in Previous Period/Previous Year. If you carry the price forward, the system also posts the price change on the first day of the current period (2).

This graphic is explained in the accompanying text