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 Price Fields and Valuation Data Locate this document in the navigation structure

Use

The accounting and costing views in the material master record contain price fields which can be accessed by costing to valuate the materials and which can be updated with the costing results. These price fields are as follows:

  • Standard price and information relating to future, current and previous standard cost estimate

The standard price is calculated by a standard cost estimate , and is written to the material master record when the cost estimate is released . The standard price should not change during a planning period. When you create a costing view for the first time, you enter a provisional price (such as 1 euro).

As soon as you mark the standard cost estimate, the costing results are transferred to the material master as the future standard price. As soon as you release the standard cost estimate for the material this price becomes the current standard price, overwriting the existing current standard price.

For more information, see Updating Standard Prices .

  • Moving average price

The moving average price changes due to goods movements and invoice entries. The system calculates the price automatically by dividing the material value in the material stock account by the total of all warehouse stocks in a plant. This price cannot be calculated via a material cost estimate.

  • Planned prices 1, 2, 3 with validity date from

You can either enter these prices manually, or determine them using a material cost estimate, and transfer the costing results as the other planned prices in the material master using the Price Update function.

For more information, see Updating the Other Planned Prices .

  • Tax-based and commercial prices 1, 2, 3

You can either enter these prices manually, or determine them using a material cost estimate, and transfer the costing results as tax-based and commercial prices in the material master using the Price Update function.

For more information, see Tax-Based and Commercial Prices .

The valuation data in the costing view controls the valuation of the material and the assignment of the material to a cost element (G/L account). If you have already created an accounting view for the material, certain data will also be displayed here.

  • Valuation class

Together with account determination in Customizing for valuation and account assignment, the valuation class determines the G/L accounts to which costs are updated by a valuation-relevant business transaction (such as a goods issue).

For material costing, the valuation class controls the cost element to which the planned costs for this material are assigned, and the cost element under which the actual costs are updated when the material produced is delivered to stock.

  • Valuation category

The valuation category specifies the criterion according to which partial stocks are distinguished from one another. Valuation category B , for example, differentiates the stock according to whether the material is produced in-house or procured externally. Stocks produced in-house are valuated differently from those procured externally. The value of the total stock equals the total of the stock values and stock quantities of the individual sub-stocks. With material costing, a separate valuation of the stocks is possible only to a limited degree.

 ( )

The stocks of a material with split valuation are carried separately for each valuation type. They are consolidated in the valuation header record. The data calculated by the standard cost estimate is updated in this valuation header record and under the In-house valuation type, if just one In-house valuation type was defined.

You cannot split the costing results by origin or quality.

For more information see Valuation category , Valuation type , Split valuation and Split-Valuated Stocks .

  • Price control

The price control indicator specifies whether the stock of the material (and therefore also every business transaction for the material, such as usage) is valuated with the standard price or with a moving price.

For material costing, you can go into Customizing for Product Cost Planning and create your own valuation strategy for the calculation of material costs. This strategy defines a search sequence for the selection of the different prices stored in the material master record (such as the standard price, future standard price, previous standard price, and moving average price)

For more information, see Control of Material Valuation .

  • Price unit

Defines the number of units of measure to which the price in the material master record refers

  • Currency

Determined automatically from the company code.

See also:

For further information, see the following:

  • MM Inventory Management under Material Master

  • MM Material Valuation in the following documents: