Skip to Content
author's profile photo Former Member
Former Member

Pricing

In the material master there are two prices, Planned price and the standard price, what is the difference ?

Gayani

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 17, 2008 at 04:03 AM

    Hello Gayani

    Product costing calculates the cost of goods manufactured and the cost of goods sold per product unit. Products are costed automatically using the BOMs and routings in Production Planning.This is planeed price and

    A constant price at which a material is valuated without taking goods movements and invoices into account it is a standerd price

    Price variances (for example, purchase price higher than standard price) upon goods receipt or invoice receipt are posted by the system to price difference accounts. This does not affect the standard price.

    I think this will clear your idea

    If it is useful please give some points

    Regards

    ravi

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jan 17, 2008 at 04:27 AM

    Hi

    Standard Price: Is the way that calculates precisely based on some standard norms, such as bom,activity, oh etc which calculates the cost estimates of Finished product accurately this standard price will be your basis for all goods movement purpose i.e inventory valuation purpose, generally this will be done periodically.

    Planned price: Is the tentative price or approximate price of a material which will base for standard price. eg. you want to maintain a price for a particular raw material XYZ for next period is 12 and want to update this 12 price to standard price in a next period, then you can move this planned price to standard price as basis like you can maintain different planned price of material based on your business strategy and update standard price accordingly for rawmaterials. this is one example.

    hope you got it

    Regards

    Laxmiprasad

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.