Explain Prices Maintenance for Materials Transferred from Legacy to SAP?

Before you transfer the initial inventory from a legacy system to SAP, you need to create the relevant master data for the materials. If you are planning to maintain a standard price for the materials, then you will create the material masters with S as the price control indictor in SAP. With this control, when you enter the material inventory, the system valuates this stock with the standard price defined. In this case, you enter a new price and the system posts the price difference (between the standard price and the new price you entered) to a price difference account.

Similarly, if you are planning to maintain a moving average price for materials, then you will create the material masters with V as the Price Control Indictor in SAP. With this control, when you enter the material inventory, the system valuates this stock with the moving average price defined. In this case, you enter a new price and the system adjusts the moving average price accordingly. If you enter only the quantity, and not any new price, the system continues to evaluate the stock at the original moving average price, and the price of the material does not change.