Besides the standard cost that is updated on the Costing 2 tab, there are three commercial inventory prices and three tax-based inventory prices that can be updated on the Accounting 2 tab of the material master. In addition, the Planned Price fields on the Costing 2 tab can also be used for update. There are rules about which cost component view is used for each of the material master fields.

The Inventory Valuation Cost category is the only one that is used for updating standard costs. Another rule that comes into play is the configuration of the Costing Type.įigure 5: Price update definitions for various costing types The combined costs associated with all cost components which are assigned to that category make up the standard cost. The Price Update field in the costing type definition using transaction OKKI (Figure 5) defines which fields can be updated for the Costing Variant. The possible definitions are No Update, Standard Price, Commercial Inventory, Tax-based Inventory, and Prices Other than Standard Price. Commercial Inventory prices can only be updated from the Commercial Inventory cost component view, and Tax-based Inventory prices can only be updated from the Tax-based Inventory cost component view.Ĭommercial and Tax-based Inventory price updates contain special “Determination of lowest value” logic used when updating those fields. For costing types defined as Prices Other than Standard Price, there is a lot more flexibility as to which views can be used for update.

First of all, costing variants using this costing type can be used for updating the Planned Price fields in the Costing 2 tab of the materials as well as the Commercial and Tax-based Inventory fields on the Accounting 2 tab.

Cost component view comes into play for the updates as only the Commercial Inventory view can update the Commercial Inventory fields and only the Tax-based Inventory view can update the Tax-based fields.

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