What valuation methods are used to valuate materials in SAP?

Moving Average Price “V” and Standard Price “S” are the two valuation methods used to valuate materials in SAP. The moving average price is equal to the division of the total stock value by the total stock quantity. It is a dynamic price which changes if the purchase order price changes frequently. The standard price which is typically used for finished goods is a static price defined in the material master record.

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