What is physical inventory price in SAP MM-IM - Inventory Management?

SAP Term: physical inventory price

• Component: MM-IM

• Component Name: Inventory Management

• Description: The tax-based and commercial law-based prices can be updated in the material master record, in balance sheet valuation of material stocks, You can save different partial results from balance sheet valuation using the so-called physical inventory prices. You can use these partial results for various procedures in balance sheet valuation. The system lists the individual results, links them to each other and determines the balance between book value and balance sheet value. The list acts as a reference for the accountant, to the postings which are performed manually in financial accounting. It is also the document the external auditor refers to. The physical inventory prices are updated by the following procedures in the SAP System: Lowest value determination based on market prices Lowest value determination based on range of coverage Lowest value determination based on movement rate Loss-free valuation Inventory costing LIFO valuation for individual materials LIFO valuation for pool

Smart SAP Assistant

• Key Concepts: 
  Physical inventory price is a term used in SAP Inventory Management (MM-IM). It is the price of an item in inventory that is determined by physical counting. This price is used to calculate the value of the inventory and can be different from the standard price. 
  
  How to use it: 
  Physical inventory price can be used to determine the value of an item in inventory. This is done by physically counting the items and then entering the physical inventory price into SAP. The physical inventory price will then be used to calculate the value of the item in inventory. 
  
  Tips & Tricks: 
  It is important to ensure that the physical inventory price is accurate, as it will be used to calculate the value of the item in inventory. It is also important to ensure that the physical inventory price is updated regularly, as this will ensure that the value of the item in inventory is accurate. 
  
  Related Information: 
  Physical inventory price can be used in conjunction with other SAP terms such as standard price and moving average price. It is also important to note that physical inventory prices can be different from standard prices, which can affect the value of an item in inventory.