Production order variances not updating in material master

We have activated Material ledger-
Price determination selected-2(transaction based)
Finished goods standard price--832.50
Price control in material master-S (Standard Price)
Variances per kg: 265.50 is shown in Moving Price field in Material master-
Why it is not adding to standard Price-
How to add 265.50 per kg(variance) and increase the Finished goods valuation (in the balance sheet)
Thanks in advance
Joseph David

Hi,
After activating ML, if you maintain FG Material Price Control-S with Price Determination-2, the shown Moving Average price is ONLY FOR STATISTICAL/reporting PURPOSE, The goods movements and Material Inventory valuation will not be updated/valuated with Moving Average Price, it will still be done as per Standard Price only.  If you want to get the full advantage of  ML activated realistic/actual valuation of your inventory and goods movements, you need to change the Material Price Determination to u201C03u201D. Then as per SAP standard ML process, preliminary valuation for the material will be u201CStandard Priceu201D and all Price differences will be accumulated in ML categories and after period/month-end activities, the goods movements and inventory will be evaluated with u201CPeriodic Unit Priceu201D i.e., averaging by taking into consideration all Material Price differences.
Regards
appalas

Similar Messages

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