Periodic Material Valuation: Single-Level Material Price Determination
Use
With this function you can calculate the material stock of the previous posting period with the periodic unit price after single-level price determination. The valuation of the current period is not affected.
Integration
For more information, see
Collecting Actual Data for the Material Ledger.
Prerequisites
The prerequisites for single-level price determination described under
Periodic Material Valuation also apply here.Features
The material stock as well as valuation-relevant transactions are first valuated with a preliminary valuation price, the standard price. Any price and exchange rate differences from the valuation price are collected in the material ledger. Single-level material price determination takes the following difference amounts into account:
After period closing, the cumulative difference amounts are applied to the cumulative inventory for the closed period. The system uses this to calculate the weighted average price, which can be used to valuate the ending inventory. The valuation for the current period is not affected by the single-level price determination.
Single-level price determination is the basis for the functions of multilevel actual costing.
See also:
Example: Single-Level Price Determination
Multilevel Actual Costing