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Price control

Hi All,

I am new to SAP MM,

What is the main difference between standard price and moving average price, And While I am creating the Material (Material Type is Drinks) it will take Moving Average Price(V) Only, We cant able to change this, Why?

Thanks in advance,

Sudheer.

Former Member
Former Member replied

Hi,

standard price

A constant price at which a material is valuated without taking goods movements and invoices into account.

moving average price

A price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material.

The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.

At the material type settings you can define either, Standard or MAP valuation for a material type

Regards

Merwyn

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