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Plannd price and Standrd price

Dear friends,

what is Planned price and what is standrd price.

Regards,

Hari

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 17, 2008 at 10:27 AM

    Planned price:Price that the system can take as a basis for product costing.

    Standerd price:A constant price at which a material is valuated without taking goods movements and invoices into account.

    Use

    The valuation of material stocks at standard prices means that all goods movements are valuated at the same price over an extended period.

    Procedure

    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.

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 17, 2008 at 11:27 AM

    Hi,

    Standard Price: A price that is based on an activity unit and that remains stable over a relatively long period of time. The standard price of a material can remain stable for a year. It is essentially a norm that should not be exceeded

    Actually, the standard price is a valuation procedure in which the current valuation is never affected by goods movements or settlements. The inventory price as the standard price is set explicitly by a separate function and remains valid until replaced by a new price.

    Planned Price: The price anticipated for a particular undertaking (such as an order).

    Standard costs for purchased materials need to be periodically reviewed and updated, if necessary, to match the current market conditions and negotiated prices. This process begins with transferring the quantities of materials required from long term planning and downloading the latest purchase prices. The material requirements valuated with the latest purchase prices are reviewed by the buyers to compare with the current standards. The buyers update the spreadsheet with the prices that they determine should be the new standard. The updated prices are then uploaded as the new planned prices. These planned prices are used by the product costing run to valuate the semi-finished and fished goods to come up with the standard cost of goods sold for the final products.

    I hope it will help.

    If helpful, please assign points.

    Regards,

    Manju

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 18, 2008 at 06:05 AM

    Hi,

    Planned price is associate with Activity types and Standard prices is with Material.

    In Tcode KP26, you can define the plan price(both variable and fixed) for an activity type in a Cost Center.

    You can checkout the standard price of a material in MM03. This price will get triggered in all your MM transaction i.e., in your Good Receipt and other MM document. Actual price of the material might be different from the standard price which get captured in the Material Ledger.

    Tx,

    Usha.

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