Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

unit price in receipt from production

Dear All,

How the system calculate the unit price in receipt from production ? I am not so sure

about my calculation where the valuation method setting of the items are moving average.

Tks in advance.



Former Member


Unit price in receipt from production will be cost of good manufactured (COGM).

The calculation formula is direct material cost + direct labor cost + overhead cost.

you must explain whether you use full costing or variable costing in your production.

Direct material cost is retrieved from item cost of raw material. Labor cost is retrieved

item cost where the valuation method of labor item is standard. It won't be changed until

you perform revaluation.

For more detail, I suggest to learn cost accounting.


0 View this answer in context
Not what you were looking for? View more on this topic or Ask a question