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The price control of a material determines whether the material is valuated at the standard price, the periodic unit price, or the moving average price.

The Price determination indicator in the material master determines whether price determination is:

These control parameters are in the Accounting 1 view of the materialís master record.

Default Values in Customizing

You can specify the default price control that is used when a material is created in Customizing under Logistics - General ® Material Master ® Basic Settings ® Material Types ® Define Attributes of Material Types.

Under Actual Costing/Material Ledger ® Activate Valuation Areas for the Material Ledger, you can specify for each plant which price determination is used as a default when a material is created.


If the material ledger is not active, two methods of price control are available:

For more information about material valuation without the material ledger see MM - Material Valuation under Structure link Material Valuation in the SAP System.

If the material ledger is active, the relevance of the price control of a material depends on its price determination indicator in the material master.

Combinations of Price Control and Price Determination

Price Determination

Price Control Indicator S

Price Control Indicator V

3 single-/multilevel

Standard price
(with the moving average price for information)

Not an option as the valuation price of the current posting period

If you revaluate the material inventories at the time of the closing entry, the periodic unit price is stored as the valuation price for the closed posting period under price control indicator V.

2 transaction-based

Standard price
(with the moving average price for information purposes)

Moving average price


For additional background information, see the following:

Single-Level Material Price Determination

Multilevel Material Price Determination

Transaction-Based Material Price Determination

For additional process flow information, see the following:

Periodic Material Valuation

Multilevel Actual Costing

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