Thursday, March 6, 2008

Pricing in MM

Standard price are used for products that do not fluctuated frequently. It is usually used for finished or semi finished products.

Moving average price are used mainly for raw materials that are purchased externally.
The advantage of using moving average price for your raw materials is that your inventory costs will always reflect the current market cost.
SAP strongly recommends that you do not select price control V for semi-finished products and finished products, because doing so will very easily cause the calculation of unrealistic valuation prices.
SAP recommends: Price control V for raw materials and trading goods; price control S for semi-finished products and products.

If we select std price for any type of material or mav and then make po, it will pick from material master or what?
The Purchase Info Record have the FIRST priority. When no po info record is found, the Purchase Order will pick the user LAST enter price. The PO module do not pick up any price from material master.

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