Inventory valuation is more than just a setting in SAP—it directly influences your cost structure, profitability, and financial reporting. Selecting the right method ensures precise cost control, better procurement decisions, and accurate financials.
📌 Standard Price (S): Best for finished goods and manufactured products, ensuring stable financial reporting with separate variance postings.
📌 Moving Average Price (V): Ideal for raw materials and trading goods, dynamically adjusting to reflect real-time cost changes.
Key Factors:
- Price Determination
- Price Fluctuation
- Costing Impact
- Inventory Valuation
- Best Use Case
- Effect on Financial Reporting
- Impact on Product Costing
- Changes in Stock Movement
💡 Make informed decisions to improve financial accuracy and operational efficiency.
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