pricing types

[Former Member]

hi

mm gurus

how we will decide that , for a particular material type whether we have to fix standard price or moving average price

thanks in advance

subramanyam

[Former Member]

Hi Subramanyam

go to

http://help.sap.com/saphelp_47x200/helpdata/en/dd/5616cc545a11d1a7020000e829fd11/frameset.htm

regards

Yogesh

[Former Member]

hello Subramanyam subbu,

Moving average price

Price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material.

The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is recalculated automatically by the system after each goods movement or invoice entry.

In the moving average price procedure, all quantity movements are valuated at delivered prices.

Price variances at the time of goods or invoice receipt are posted to the stock account. As a result, the moving average price is continually adjusted to reflect changes in delivered prices over time.

Moving average sales price is the Sales price that changes as a result of goods movements.

The moving average sales price is the sales value of a material divided by the current quantity.

Standard price

Constant price at which a material is valuated without taking goods movements and invoices into account.

With the standard price procedure, all quantity movements are valuated at the valuation price in the material master record.

Price variances at the time of goods/invoice receipt are posted via the price difference accounts.

<b>**reward if helps**</b>

Regards

AK

[former_member193326]

Hello,

You have a very useful information in the SAP help`(help.sap.com)

PRICE CONTROL

Use

In the SAP System, there are two types of price control:

Standard price

Moving average price

These two types of price control differ in how they handle price variances resulting from goods receipts or invoice receipts.

Integration

You determine the price control that should be used for a material when you create the material and enter the accounting data for it. You enter one of the following indicators in the Price control field to determine how the price is controlled:

S for standard price control

V for moving average price control

Features

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.

For more information, see Standard Price: Value Calculation.

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.

Manual price changes are usually unnecessary. However, they are possible.

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.

The moving average price displayed in the material master record is rounded off. For valuation calculations, the system always uses the exact price (stock value / stock quantity).

You can get more information in the help.

Best Regards,

Arminda Jack