Meaning if "G", the VPRS will get the price from either standard price ("S") or the moving average price ("V") of the material, depending on which price control flag is set in the material master?
That means the COGS is the price in material master? I thought COGS consist of not only material cost.
The condition type VPRS is labeled as a statistical condition in the pricing procedure.
Using the condition category G, the condition type VPRS goes into the valuation segment of the material master and determines from here the standard or average price.
The condition category S always accesses the standard price whereas condition category T always accesses the average price.
Ya, I understand that but what I want to know more is that, COGS not only the price in material master as it consists of others as well. So if VPRS only material price then it is not correct.
Hence, I would like to know VPRS also picking up what else and how it is picking up?
I think you are confused with the terminology on Cost and Price. Cost is nothing but the expenses incurred by a manufacturer to manufacture a product which should not be termed as a price.
To arrive at a selling price, manufacturers will add some profit margin over and above this cost. So in sale order, VPRS will fetch from material master Accounting1 view which is nothing but the cost incurred by the manufacturer. This should always be less than selling price.
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