<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ti/onlinemanual/000089" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Cost price and valuation price</Title>
		<Keyword><Level1>Cost and Valuation Prices</Level1>
		</Keyword>
	</Header>
	<GeneralSection><GeneralSection><SectionTitle>Cost price</SectionTitle>
			<List><ListIntro>The cost price is calculated by using a <Link href="/baanerp/ti/glossary/glossary#PriCalCod.ti" role="glossary">price calculation</Link> code, and is based on standard structures, for example, routing and BOM. The purpose of the cost calculation is:</ListIntro>
				<ListItem>Simulation</ListItem>
				<ListItem>Estimation</ListItem>
				<ListItem>Analysis</ListItem>
			</List>
			<Paragraph>The cost price is situation-independent (fixed price).</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Valuation price</SectionTitle>
			<List><ListIntro>The valuation price calculation is done by using a valuation method (FTP, LIFO, FIFO, MAUC, or lot costing) and is based upon economic value. The valuation price calculation is situation- and transaction-independent. The valuation price calculation is done on the basis of:</ListIntro>
				<ListItem>Inventory value.</ListItem>
				<ListItem>Issue.</ListItem>
				<ListItem>Receipt.</ListItem>
				<ListItem>Transfer.</ListItem>
			</List>
			<Paragraph>The purpose of the valuation price calculation is to facilitate financial transactions and accounting.</Paragraph>
			<Paragraph>Two different prices occur within the valuation price. This depends on the moment when SSA ERP books the surcharge, which can be during the receipt or during the issue of an item. The calculation of this so-called receipt valuation price and the calculation of the issue valuation price are different. The calculations are expressed as follows:</Paragraph>
			<Paragraph>For the receipt valuation price calculation of item A in warehouse 001, SSA ERP determines:</Paragraph>
			<List><ListItem>The independent surcharges</ListItem>
				<ListItem>The warehouse-specific surcharges</ListItem>
				<ListItem>The item and item-group-specific surcharges</ListItem>
			</List>
			<Paragraph>The issue valuation price is equal to the receipt valuation price plus:</Paragraph>
			<List><ListItem>The issue item surcharges</ListItem>
				<ListItem>The issue item/warehouse surcharges</ListItem>
				<ListItem>The issue warehouse surcharges</ListItem>
			</List>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000085" role="manual">Booking triggered by</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/ti/onlinemanual/000187" role="manual">Example of cost and valuation price calculation</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
