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Use

For each Plant , you can specify that a planned price is to be released as the valuation price upon the first goods movement in a new period (as long as the validity date has been reached). You do this in Customizing, under

  Controlling   Product Cost Controlling   Actual Costing / Material Ledger   Activate Valuation Areas for the Material Ledger  

When using dynamic price release , the planned prices are handled by the system with the following priority:

  1. Marked standard cost estimate

  2. Manually maintained future valuation price

Note Note

It is a good idea to use dynamic price release if it would pose organizational problems for you to release the planned prices between the program for period closing and the first goods movement. In this case, use dynamic price release so that the goods movements in this period are valuated with the new price. Note that you must release the planned prices before the end of the period for materials that are not moved in this time.

Dynamic price release occurs when an order is settled, an invoice is created, or whenever a goods movement occurs for a material.

For more information, see Releasing Planned Prices .

End of the note.

Integration

You can use this function even if you have not installed the material ledger. If you have installed the material ledger, you can use this type of activation for both material price determination settings.

Features

The first goods movement that triggers dynamic price release is valuated with the new price.

The existing inventory is revaluated by the system and the following documents are generated:

  • Material document for the goods movement

  • Accounting document for price changes

  • Material ledger document with the following items:

  • Update (UP)

  • Material price determination (CL) for materials whose prices were determined with transaction-based price determination

  • Price change (PC) with the new and the old prices for the material as well as the revaluation amount

  • Change document in the material master