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Material valuations


why some material valuations are performed with price S and V and why other with LIFO and FIFO ?

Best regards

Former Member


Material valuation is required so as to keep the records of the price changes at the each stage of the procuement....

So for this we define the price controls Standard S and MAP moving avg price in the Material master record of the material....

Now when you procure the material, if you make the PO with more or less price, and if the price control is Standard, then the difference will automatically get posted to PRD account ie. price difference account...

While in case of the MAP, which is mostly used in case of the fineshed products, when procurements start if there is diffrence, then stock account is hit not the PRD account.....

Semi finished material is mostly used with S standard price control.....

LIFO n FIFO are used in balance sheet valuations...

Hope it helps..



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