Raw Material Inflation/deflation impact on Finished goods

[Former Member]

How do we  link inflation/deflation of  raw materials purchased through procurement to Finished goods(products). There will be impact(inflation/deflation) of the products based on current material purchases. How do we account for the inflation/deflation of raw materials.Please suggest? 

[former_member193808]

Hi Srihari,

Do you mean to say your raw material has price control V (moving avg) assigned, which is causing the inflation/deflation? If so, you could use batch valuation. Every purchase receipts should be batch valuated and the same should reflect in FG

Thanks

Prem