Setting Material Price Determination

Use

You can change the price determination indicator in the material master to change the material’s price determination from transaction-based to single- or multilevel price determination, or vice versa.

This function is typically used after the material ledger is installed, because at that point all materials have price determination control 2 (transaction-based).

Procedure

Choose Accounting Controlling Product Cost Controlling Actual Costing/Material Ledger Environment Change Material Price Determination.
Enter the selection data for the material or materials.
Enter the following:
1. In the Old price determination field, enter the current price determination setting.
2. In the New price determination field, enter the new price determination setting.
3. In the New price control field, enter the desired price control setting.
If you want to change a material with price determination 2 and price control V to price determination 3, you must first change the material's price control to S.
Choose the method of processing.
Choose Execute .

Result

The price determination (and, if applicable, the price control) of the relevant material or materials is changed in the material master record and in the material ledger data.

Note

Caution Caution

If you change the price control, such as from 2 to 3 or from 3 to 2 and back to 3 , this can cause the following inconsistencies in material price analysis :

End of the caution.

The beginning inventory of the current period differs from the ending inventory of the previous period.
Quantities and values at higher levels of the hierarchy (such as receipts ) do not correspond to the assigned documents at the lower levels.

From the subsequent period onward, the display structure of material price analysis again corresponds to the documents.

( ) You should only change the price determination setting when it is absolutely necessary.