What is loss-free valuation in SAP MM-IV - Invoice Verification?

SAP Term: loss-free valuation

• Component: MM-IV

• Component Name: Invoice Verification

• Description: A procedure in balance sheet valuation of material stocks. The system compares a modified sales prices with a comparison price. The lower price is adopted as a partial result of balance sheet valuation and can be saved as a physical inventory price.

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• Key Concepts: 
  Loss-free valuation is a process used in SAP's Materials Management (MM) Invoice Verification (IV) component. It is a method of valuing goods and services that have been received from a vendor, but not yet invoiced. This process allows for the accurate valuation of goods and services without any losses due to incorrect invoicing. 
  
  How to use it: 
  In order to use loss-free valuation, the user must first enter the goods and services received from the vendor into the system. The system will then calculate the value of the goods and services based on the current market prices. This value will be used as the basis for the invoice verification process. The user can then compare this value to the invoice amount to ensure that there are no discrepancies between the two amounts. 
  
  Tips & Tricks: 
  It is important to ensure that all goods and services received from vendors are accurately entered into the system in order for loss-free valuation to be effective. Additionally, it is important to regularly review invoices to ensure that they match up with the values calculated by the system. 
  
  Related Information: 
  Loss-free valuation is an important part of SAP's Materials Management (MM) Invoice Verification (IV) component. It is also related to other processes such as inventory management, pricing, and payment processing.