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How to change the standard price in Material Ledger for materials with Price Determination Control 3

When the Material Ledger is active, for materials with price determination control 3, a price change or a release cost estimate should always be the first transaction to execute in the period. 

If you want to change the price for a new period, you have to  release the price before closing the previous  period. You can only release a new price for the material when the status in the period is  10 ‘Period opened’, 20 ‘Price change completed’ or 01 ‘New objects’. The reason is that the post closing process has an influence on the status of the material in the new period. After executing the post closing step, the system changes the status of the previous period to 70 ‘Closing entry completed’ and the status of current period to 30 ‘Quantities and values entered’. Therefore the system does not allow to change the price subsequently. Once the period status is ’30’, the standard price cannot be release or changed.

For more details please see note     


Before opening a new period, in order to carry out the period end closing and release a new standard price, all the steps of transaction CKMLCP can be executed except the ‘post closing step’.   

The recommended sequence of steps could be:                   

1. Mark the new prices                                                      

2. Run MMPV (period shift in MM) 

3. Single-level Price determination for previous period                     

4. Multi-level Price determination for previous period                      

5. Revaluation of consumption

6. WIP revaluation

7. Price release for the new period                    

8. Post closing step for the previous period       

In case that the status of the material does not allow to release a new price in the period, the following workarounds can be applied in order to change the standard price for the new period:

– Postponing the costing release to next month                             

– Reversing transactions and usage of note                          

– Using the option from note . You can use this option for current period. It provides a correction which allows you to make a price change, despite the  transactions that you have already run.              

Dynamic Price Release Functionality 

In case that you want to release a future price or  a marked cost estimate during the first material movement in the period you can use the functionality of the dynamic price release (Transaction OMX5).

The dynamic price release is intended to release the new prices for materials that are posted or moved at the beginning of a new period, before the price release has been implemented for flagged cost estimates or future prices.                                                          

It has been designed to be activated when there are material movements and a cost estimate has not been yet released.                              

With a posting for the material in MM module, the status of the material changes and if this functionality is not set, it is not possible to release a new standard price in the period.                                              

Please check the attached note  which provides a detailed  explanation about the dynamic price release functionality. 

Whatever the way in which the standard price is released in the new  period, this change should be carried out before closing the previous period, otherwise it will not be possible.                                     

This functionality has not been designed to replace the transactions CKME, CK24 or CK40N. The dynamic release cannot and should not replace the static release; it should only enhance it.                                                                                           

1 Comment
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  • Hi Maria,

    With Material ledger activated and Price Determination use is 3, is there possibilities to ‘ADJUST’ Inventory Price based on market price.
    “ADJUST’ here means, for the closed period, instead of using material ledger calculated actual price, user can change the actual price to market price. But in the same closed period, the price change must not affect any of the consumption revaluation, only the remaining inventory. The market price then will be carried out to the next period.
    This case is based on IFRS, kindly your opinion on SAP Material Ledger Functionalities. As far as I understand standard material ledger can’t comply the requirement.