Material Valuation for Finished Product in Production Scenario

[Former Member]

Dear SAP Gurus,

Kindly recommend appropriate Material Valuation Control for Finished Product in manufacturing scenario. SAP recommends pricing control 'S' (Standard), but my client's buying nature is not periodic(varies), they buy material on requirement basis (On actual material consumption ) which is very frequent. Pricing for each buy also changes due to the market conditions. You are requested to suggest me appropriate Material Valuation Control (either S / V) for Finished Product along with reasons, advantages & disadvantages for the same.

Thanks,

Shantanu

[Former Member]

Hi Alll

Well one disavantage in material with 2/V for production consumption is in case of incorrect goods receipt, incorrect price for example, all your consumption will be wrong.

For correction you would have to reverse all production posting, correct the goods receipt and repost the production confirmation.

If you were using 3/S configuration, all consumption would be done in standard price and at month end material ledger would calculate the actual price for price revaluation. People from MM would have time to correct the entries during the month.

Regards.