What is Difference between Standard Price (S) and Moving Average Price (V) in SAP Price Control ?

Two types of Price Controlled given by SAP
  • Moving Price – ‘V’
  • Standard Price- ‘S’

Standard Price:

Valuation using a standard price has the following features:
  • All inventory postings are carried out at the standard price.
  • Variances are posted to price difference accounts
  • Variances are updated
  • Price changes can be monitored
If a material is assigned a standard price (S), the value of the material is always calculated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in valuation.

Moving Average Price:

Valuation using a moving average price results in the following:
  • Goods receipts are posted at the goods receipt value.
  • The price in the material master is adjusted to the delivered price.
  • Price differences occur only in exceptional circumstances.
If a material is assigned a moving average price (MAP), the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account; as a result, the moving average price and the value of the stock change
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