Market price analysis and loss free valuation example

Hi,
I want to get advice on the devaluation activity.
There are 3 method which are market price, range of coverage and loss free valuation.
I read on sap documentation yet I cannot really get it. So before I execute MRN0, MRN1 and MRN3, I need help to understand
What does it mean by market price and loss free? Can give example of these 2?
I got the definition but i not quite understand. So I need example to explain these 2 method.
"When determining the lowest value based on market prices, the system searches for the lowest price (or alternatively, the most recent price) among the various prices stored for each material. We recommend that you limit the period during which the system retrieves data to the last three months, so the prices are as up-to-date as possible"
"You may need to devaluate materials sold by your company if they will probably not fetch the material price when they are sold. For example, if the demand for a material diminishes because it is no longer the latest technology, you can only sell this material at a loss compared to the material price."
Thanks

Hi
You may need to devaluate materials sold by your company if they will probably not fetch the material price when they are sold.
As per my knowledge devaluvate means you are giving discount on your material .
Regards
Kailas Ugale

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