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What is Sap Material Ledger Periodic Unit Price?

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The new Periodic Unit Price is calculated when you carry out material ledger closing for a material. If the material has S price control in its master record, the system uses the standard price for valuation, and the new periodic unit price is purely informational. If the material has V price control, the system uses the new periodic unit price for valuation. The system calculates the periodic unit price in parallel in three currencies. Here the below SAP Online Tutorials gives more information about the material ledger Periodic unit Price and how it’s calculating and with examples.

How system calculates new unit price?

  1. The stock at the time of the sap material ledger closing (closing inventory quantity) is valuated with the periodic unit price valid till now.
  1. Differences between the resulting inventory value and the actual value resulting from postings that were collected in the material ledger are taken into consideration in such a way that the closing inventory value is adjusted. Based on these differences, the system changes the inventory value proportional to the inventory quantity present at the time of material ledger closing. If there is insufficient inventory to apply the total difference (inventory shortage), the portion of the difference not applied is posted to the price difference account (transaction key PRY).
  1. The adjusted closing inventory value is divided by the closing inventory quantity (number of units) to determine the new periodic unit price.

The following examples show you how the unit price is calculated in different cases. The examples refer to differences arising from invoice receipts.

Invoice Receipts Quantity is Less than the Goods Receipts Quantity
If the total invoice receipts quantity (IRQ) is less than the total goods receipts quantity (GRQ) or if these quantities are equal, the system calculates the difference in the ending inventory value as follows: IRQ x (average purchase price – periodic unit price)


Invoice Receipts Quantity is Greater than the Goods Receipts Quantity
If the total invoice receipts quantity (IRQ) is greater than the total goods receipts quantity (GRQ), the system calculates the difference in the ending inventory value as follows: GRQ x (average purchase price – periodic unit price).

Also See: Material Ledger Closing in SAP Quick review

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