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Impact of Switching from Standard price to Moving Avewrage Price

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Hi Gurus,

I have a scenario that I need to ask.we have selling company codes that only sells to the customer, they don't manufacture.
The selling company codes use standard price costing and now we are planning to move these company codes to use Moving Average price. I am wondering if anyone explains the impact of making the move and what should be the steps involved to safely switch from standard price to moving average price. Thanks

Regards,

Shaiq

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Answers (1)

Answers (1)

DominikTylczyn
Active Contributor
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Hello itzazshah786

A change from moving average to standard price or vice versa should be a business driven decision not a system driven. Why would you want to do that change? Do you have any specific business reasons?

I know of trading companies that actually switched from moving average to standard price as that gives them more visibility in budget planning and execution, planned costs, actual costs and variances. Here the decision was strictly business driven and it payed off big time.

It's plainly wrong to assume that if you buy a material it should be valuated with moving average price!!!

Best regards

Dominik Tylczynski