Finance & Controlling
What is Standard Price (S)?
A price control in which inventory is valued at a fixed standard price, with differences posted to variance accounts.
Typical for manufactured goods, it keeps inventory values stable. Price differences arise at goods receipt or invoice. With the material ledger, actual costing can revalue inventory at period end.
Related terms
Moving Average Price
A price control in which the material's valuation price is recalculated with each goods receipt.
Product Costing
Controlling functions that calculate the cost of goods manufactured and sold for products, including standard cost estimates.
Material Ledger
A sub-ledger for valuing inventory in multiple currencies and valuations, mandatory in S/4HANA, with optional actual costing.
Price Control
A material master setting that determines whether stock is valued at standard price (S) or moving average price (V).
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