Managing Material Price Changes and Inventory Values

This scope item provides users with an example of a process description that they can use to change material prices, mark prices for change, and release prices for material valuation.

You can make a price change in two ways:

In a single processing step with immediate effect: When material costs are changed, inventory is revaluated with all price controls, including valuation with standard price and valuation with periodic unit price.                                 

Change in a two-step procedure via determine Future Prices and Releasing Planned Prices: (1) When future prices are entered, the new future valuation prices are updated in all currencies and valuations in the material ledger data and in the company code currency in the material master record. 

(2) When planned price changes are released, the system updates the valid future prices (in the various currencies and valuations) as the current standard price or valuation price, and calculates a revaluation amount for the specific inventory quantity and revaluates the inventory value by this amount. The offsetting entry takes place in the revaluation account in accordance with account determination. If no material stock exists, only the price is changed.

          

Key Process Steps Covered

  • Alternative 1 - One-step price change: (1a) Change Material Costs (1b) Upload Material Inventory Prices
  • Alternative 2 - Two-step procedure: (1) Enter Future Price; (2) Release Planned Price Change
  • Material Inventory Values – Balance Summary Report

Benefits

  • Maintain valuation prices independently in up to three currencies or valuations
  • Support group and local currencies