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Former Member

Materials Valued at Moving Average Price

Hi,

What is the role of product cost planning in case of materials valued at moving average price.

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    Former Member
    Aug 20, 2007 at 08:31 AM

    Hi,

    When you don't use materials for production planning you can use in MM the moving average price.

    When you are using PP it is better to use standard prices, you make a planning in product costing and from there you update the price in MM. For the sales materials it is a total price from different components used in your PP order and perhaps some stistical components

    Later with sales you upload CO-PA with the sales price and can upload the information from PC. In PC you can have a version by month / year.

    When you use material ledger you can upload the price differences to CO-PA.

    Now you can report from Material ledger and CO-PA the differences between standard pricing and the real costs in combination with sales

    Paul

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