Example: Single-Level Price Determination

Example 4:

For the raw material cocoa a single-level price determination is carried out in Period 1 .

The material price analysis shows the following values after the single-level price determination in Period 1.

	Quantity	Preliminary valuation	Price difference	Exchange rate difference	Price
Beginning inventory	10 kg	200 Mxn	0	0	20 Mxn
Receipts	20 kg	400 Mxn	42 Mxn	42 Mxn	24.2 Mxn
Other inward/outward movements	0	0	0	0	0
Cumulated inventory	30 kg	600 Mxn	42 Mxn	42 Mxn	22.8 Mxn
Consumption not allocated Production Chocolate	10 kg 0 10 kg 10 kg	200 Mxn 0 200 Mxn 200 Mxn	14 Mxn 14 Mxn 0 0	14 Mxn 14 Mxn 0 0	22.8 Mxn 0 20 Mxn 20 Mxn
Ending inventory	20 kg	400 Mxn	28 Mxn	28 Mxn	22.8 Mxn

Price differences are assigned to consumption through material price determination. If these differences are not entered into a multilevel price determination or multilevel price determination has not yet taken place, these price differences appear in the material price analysis under Consumption/not allocated .

See the following for further information:

Displaying Material Price Analysis

Example: Price and Exchange Rate Differences

Example: Goods Issue

During price determination, the system carries out the following calculation:

( )

The price control is not changed in the master data. The raw material cocoa is valuated with the standard price. The price calculated through price determination is updated as a periodic transfer price in period 1 and as statistical information in the accounting view 1 of the material master.

Accounting View 1 in the Material Master

Period 1: Price control: standard price: 20 Mxn,

statistically updated moving average price: 22.8 Mxn

Caution Caution

No postings occur in FI

( )

No consumption is debited. For this reason, uncalculated price differences that are first entered into the higher processing steps during multilevel price determination appear in the material price analysis after single-level price determination

End of the caution.