Material Valuations

[Former Member]

Hi,

why in material valuation there are "standard price" or "moving average price" and LIFO or FIFO ?

What is the purpose of price S and V compared to LIFO and FIFO ?

Regards

[Former Member · Accepted solution]

Hi,

look at the following link:

[former_member197616]

Hi,

In general a material price will either fluctuates or can be constant over a period of time.

Depends upon the histirical data of the price these two types of price rather valuation types are decided.If the material price is constant then it will be provided with S in the material master.If the price of the material is keeps fluctuating then the price type will be decided as V.

System finds the moving average og the previou price and latest price and updates the information in the material master.

If the material is valuated at S then system posts the price differance (differance between material price and PO price) while posting the GR in order to see that the material price cnstant and posts to stock account to make the MAP if the material is valuated at V.

FIFO is first in first out and Lifo is last in first out.

This indicator Determines whether the material or the movement type is relevant to LIFO and FIFO valuation

Regards,

[pankaj_singh9]

Hi,

Refer following link;

[Price Control V or S in material type|http://www.sap-img.com/materials/price-control-v-or-s-in-material-type.htm]

[Former Member]

Yes ok,

but why I use price control S and V and why LIFO and FIFO valuation?