Pricing

[Former Member]

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

Gayani

[Former Member]

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

[Former Member]

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