Two types of Price Controlled given by SAP
- Moving Price – ‘V’
- Standard Price- ‘S’
Standard Price:
Valuation using a standard price has the following
features:
- All inventory postings are carried out at the standard
price.
- Variances are posted to price difference accounts
- Variances are updated
- Price changes can be monitored
If a material is assigned a standard price (S), the
value of the material is always calculated at this price. If goods movements or
invoice receipts contain a price that differs from the standard price, the
differences are posted to a price difference account. The variance is not taken
into account in valuation.
Moving Average
Price:
Valuation using a moving average price results in the
following:
- Goods receipts are posted at the goods receipt value.
- The price in the material master is adjusted to the
delivered price.
- Price differences occur only in exceptional
circumstances.
If a material is assigned a moving average price
(MAP), the price is automatically adjusted in the material master record when
price variances occur. If goods movements or invoice receipts are posted using
a price that differs from the moving average price, the differences are posted
to the stock account; as a result, the moving average price and the value of
the stock change
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