Updating Standard and Actual Prices in SAP FICO

In SAP FICO, managing and updating both standard and actual prices is a crucial task for ensuring accurate cost tracking and financial reporting. Standard prices are used for cost planning and valuation, while actual prices reflect the true cost incurred. This article will guide you through the step-by-step process of updating both standard and actual prices in SAP FICO, with practical examples to help clarify the procedure.

Step 1: Understand the Difference Between Standard and Actual Prices

Before updating prices, it's important to understand the difference:

  • Standard Price: A fixed price that is used for cost planning, valuation, and inventory management. It does not change unless manually updated.
  • Actual Price: The real cost incurred based on the actual purchase or production cost of materials. This price changes with each purchase or production transaction.

Step 2: Update Standard Price for Materials

The standard price is updated manually in SAP when there is a need to adjust the price based on changes in market conditions or internal costing.

  • Go to transaction code MR21 to change the standard price of materials.
  • Enter the material number and the plant for which the standard price needs to be updated.
  • Enter the new standard price in the Standard Price field.
  • Click on Enter to update the standard price for the material.

Example: For material "MAT1001", the standard price is updated from 50 to 55 per unit in the plant "1000".

Step 3: Review and Update Standard Price in Material Master

Once the standard price is updated, it is important to check the material master record to ensure the change has been correctly applied:

  • Use transaction code MM03 to display the material master.
  • Enter the material number (e.g., MAT1001) and select the Accounting 1 view.
  • Verify that the new standard price is reflected in the Standard Price field under the Valuation Data section.

Example: After updating the standard price, verify that "MAT1001" shows the price of 55 in the material master record under the Accounting view.

Step 4: Update Actual Price Based on Purchase or Production Costs

The actual price reflects the real cost incurred based on the actual purchase or production price. To update the actual price, you need to capture the real cost data in the system:

  • If the material is purchased, the actual price will be updated automatically during the goods receipt (GR) or invoice receipt (IR) process.
  • If the material is produced, the actual price will be updated after the production order is settled and the actual costs are recorded in the system.

Example: When goods receipt for material "MAT1001" is posted at a price of 60, the actual price for the material will be updated automatically to 60 in the system.

Step 5: Post Goods Receipt (GR) for Materials

If the material is purchased, the actual price is updated during the goods receipt (GR) posting:

  • Go to transaction code MIGO to post a goods receipt.
  • Select the document type as Goods Receipt, enter the purchase order number, and enter the plant and material number.
  • Confirm the quantity and the actual price (e.g., 60 per unit) for the goods receipt.
  • Click Check and then Post to record the goods receipt and update the actual price in the system.

Example: A goods receipt is posted for 100 units of "MAT1001" at a price of 60 per unit, updating the actual price in the system.

Step 6: Review and Confirm Actual Price in Material Master

After posting the goods receipt, the actual price is automatically updated in the material master. To review the actual price:

  • Use transaction code MM03 to display the material master record.
  • Enter the material number (e.g., MAT1001) and navigate to the Accounting 1 view.
  • Check the actual price field, which now reflects the actual cost incurred (e.g., 60 per unit).

Example: After the GR, the actual price for "MAT1001" in the material master is updated to 60.

Step 7: Analyze Price Variances

Price variances occur when the actual price differs from the standard price. SAP FICO allows you to analyze these variances and take corrective actions.

  • Use transaction code CK13N to view the cost estimate and price variances.
  • Enter the material number and the costing variant.
  • Review the price variance, which shows the difference between the standard price and actual price (e.g., 55 vs. 60).

Example: The price variance for "MAT1001" shows a difference of 5, indicating that the actual price is higher than the standard price.

Step 8: Adjust Standard Price if Necessary

If the actual price consistently exceeds the standard price, it may be necessary to adjust the standard price. To update the standard price:

  • Go to transaction code MR21 to change the standard price.
  • Enter the material number and the plant.
  • Update the standard price to reflect the new cost level (e.g., change from 55 to 60).
  • Click Enter to save the updated standard price.

Example: The standard price for "MAT1001" is updated from 55 to 60 to align with the actual price.

Conclusion

Updating standard and actual prices in SAP FICO is essential for accurate financial reporting and cost control. By following the steps outlined in this article, you can efficiently manage both standard and actual prices for materials, ensuring that cost estimations are accurate and variances are properly tracked and addressed. Regularly updating these prices helps in maintaining the integrity of your financial data and supports better decision-making in cost management.




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