Valuation for the Finished Good

[Former Member]

I have finished good material with Price Control u201CSu201D with a price of Rs 100.

To make this finished good I need 5 raw materials and all the 5 material masters are having the price control u201CVu201D.

Price of these 5 raw materials is fluctuating and the total cost of the finished good varies accordingly.

Now If I valuate this finished good then the system is valuating this on the price which I have maintained in the FG master (under price control-S i.e Rs 100). But due to the fluctuation of the raw material price, now the FG price is Rs 120 (after adding all the Production charges etc)

I want to valuate the FG stock at Rs 120 not at the Rs 100.Valuation level is maintained at Plant level.

Because of this, huge difference is coming into the stock valuation.

[Former Member · Accepted solution]

hi ,

have you tried mr21

what error message it is showing?

Regards,

vijay

[Former Member]

Thanks all

I have got the solution thru your support

[Former Member]

Hi,

As far as the Material is valuated at Standard price, you will need to revise the price through MR21 or through a Re-Costing (if active) when ever there is a difference in the component values.

If the values of the child level componets vary on a short frequency, its better to maintain your Fininshed good at MAP, to avoid frequent postings to adjustment accounts

Regards

Merwyn

[Former Member]

Hi,

I suppose you are trying to change the Standard price in the MMR. It will not work,

Use MR21, enter the material and valuation type and the new price and save. If there is stock, necessary adjustment entry will be passed and the inventory gets valuated with the new Standard price.

Now check the MMR, it will have been updated with the new Standard price

Regards

Merwyn

[Former Member]

Thanks for your replies

If Once I change the price from 100 to 120 then its OK, will it be automatically change if the Price of FG will become 140 (if the RM price again rises up next time)?

or Do I need to change the price everytime (from 120 to 140) before taking the FG valuation.

[Former Member]

You SAhould have maintained the FG price with MAP. See if you could change it

[Former Member]

I am not able to change the price of the FG from 100 to 120.

[Former Member]

hi,

change the standard price to rs 120 using mr21 tcode

Regards,

Vijay