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The Hamburg plant manufactures chocolate from the raw materials cocoa and milk.

If the purchase order takes place in a foreign currency, price and exchange rate variances can arise if, for example, the exchange rate varies between the purchase order and the invoice receipt.

See also: Example: Price and Exchange Rate Differences


For period 1, single-level price determination takes place for the material.

See also: Example: Single-Level Material Price Determination


In addition to single-level price determination, multilevel material price determination and a closing entry take place for period 1.

See also: Example: Multilevel Material Price Determination

Example: Closing Entries

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