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 Material Price Change (MM-IV-MP) Locate this document in the navigation structure


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.


Material Valuation represents a link between Materials Management (MM) and Financial Accounting (FI), since it updates the G/L accounts in Financial Accounting.


Material Valuation serves the following purposes:

  • Adjusting material prices to market prices

  • Performing revaluations

  • Executing balance sheet valuation

See also:

Control of Material Valuation

Valuation Structure

Changes in Material Valuation

Price Control

Balance Sheet Valuation (MM-IM-VP)