commercial price

[Former Member]

hi,

may i know what is the use of commercial price in mm02 accounting 2 tab. i can see the commercial price being calculated in billing when i click on profitability analysis in accounting overview button.

the commercial price value is different from cogs value.

thanks

rgds

[Former Member · Accepted solution]

Eliana,

There are three commercial price used in MM. and these are having different purposes but basically for valuation.

1) Commercial-1: This price at which material is valuated for commercial purpose.

2) Commercial-2: This price is used for updating the lowest price that has been determined on the basis of range of coverage and movement rate.

3) Commercial-3: This price relates to the price unit in the previous year

Thanks,

Raja

[Former Member · Accepted solution]

Hi,

Thanks for the reply.

May I know why there is a commercial price updated in profitability analysis document? Why need that?

Thanks

Rgds

[Former Member · Accepted solution]

Eliana,

The commercial price update in Profitability document is for valuation. In fact This is the facility to post the estimated values when we dont know the actual values.

In costing-based Profitability Analysis, it is possible to configure a function known as valuation to supplement the performance information provided directly by a transaction. The additional information may be estimated, calculated, or retrieved from a different source.

Thanks,

Raja