Product Costing- Variance due to raw material price change

[Former Member]

Hi All,

I want to know if the variance caused by raw material price difference between the standard cost estimate and the price at the time of goods issue will this get capitalized into the FG material inventory ???

No where I have found this information so I am posting it here !

This question is because I read in a SAP Press book which is attached below. Please provide your insights on this:

[former_member198650]

Hi Satan,

If the FG has price indicator "S" then the system will post the difference to income statement not it capitalized. This situation will apply if you have maintained the price indicator "V- MVP". The above context is talking about when the price indicator is V. Please go through once again.

Regards,

Mukthar

[Former Member]

Hi Insomniac,

I am not sure what is the context of that paragraph but I'd say no (using standard price for FG), unless you are using moving average price for FG (not recommended) or Material Ledger.

Thanks.