Material Price Change (MM-IV-MP) 
Purpose
Material Valuation is part of Materials Management (MM). This includes the following application areas:
Purchasing
Inventory Management
Logistics Invoice Verification
Material Valuation determines or records the stock value of a material. The stock value is calculated using the formula:
Stock value = stock quantity x material price
Thus, if the stock quantity or the material price changes, the stock value changes.
Implementation Considerations
Material Valuation is not an independent application area, since most Material Valuation functions take place automatically in the SAP System. Depending on how a company is structured, tasks that have to be carried out manually belong to either Inventory Management or Invoice Verification.
Integration
Material Valuation represents a link between Materials Management (MM) and Financial Accounting (FI), since it updates the G/L accounts in Financial Accounting.
Features
Material Valuation serves the following purposes:
Adjusting material prices to market prices
Performing revaluations
Executing balance sheet valuation
See also: