How to change standard price for materials and activities within the period (S/4HANA)

[Former Member]

Hi,

Here please find the information about this transaction. It says, that changing the standard price within the period is supported by S/4 Hana. I would like to ask, how can we change standard price of materials, if i did not misunderstand the statement. Unfortunately i could not find adequate ressource to answer this question.

If it is possible to change standard price during the period, what kind of side effects will be encountered with. What kind of pros/cons this will bring to us.

l really appreciate any help you can provide.

Regards,

[Former Member · Accepted solution]

Hi yasin,

Actual costing : Inventory and material movements are generally valuated either at Standard price (S) which is constant over a period of time or Moving average price (MAP) which gets adjusted (calculated) automatically based on every Goods receipt or Invoice receipt. Both of these two methods have their own pros and cons. Actual costing combines the advantages of standard price with advantages of using MAP

ML captures all price variances (like purchase price variances, production variances etc) and allows (as optional period end activity) revaluation of ending inventories at period end and releases it as standard price (generally) for next period. Actual costing is optional in S/4 HANA.

Discipline in logistic process specially for actual costing and need for high quality master data (Material price can be changed at any time without ML , but there are restrictions in changing the price within a period if actual costing is active.

it is just opposite to Invenory valuavation menthod in ECC where we can adjust at any time. Hope it helps.

Regards,

G.V.Shivakkumar