Difference between Standard Pricing and Moving Average Price

Hi,
Would like to seek some advises on the difference between standard price and Moving average price.
also, how does it affect the account postings differently?
Thanks

Standard Price
Materials whose price control indicator is set to S are valuated in Financial Accounting (FI) at standard price.
This is recommended for semifinished products and finished products.
The moving average price is shown as a statistical value in the material master record.
The standard price is normally calculated using a standard cost estimate for the material. The standard price can also be calculated in a mixed cost estimate.
Moving Average Price
When materials whose price control indicator is set to V are received from in-house manufacturing processes, they are initially valuated with a value you defined (such as the standard price). When you settle, the material stock account is debited with the variances. This results in a new moving average price.
Valuating semifinished products and finished products with the moving average price is not recommended.
Regards,
Indranil

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Standard and Moving Average Price in Material Master

Hello,
Can any one please tell the basic difference between Standard and Moving Average price? both the cases how the Material Price is calculated?
And please provide the accounting entry's also.
Thanks

Dear S McIntosh,
You may check URL below that explain the difference between MAP and Standard price.
http://help.sap.com/saphelp_47x200/helpdata/EN/47/60ff0749f011d1894c0000e829fbbd/frameset.htm
Regards,
ian Wong

Standarad price and moving average price

What is the diff between Standarad price and moving average price ???
Somasundaram

Price Control V or S in material type
When is it useful to use the price control V or S in Material Master ?
Do I have to follow the SAP standard setting in the material type for the following material types:
- ROH(Raw materials) -> moving average price
- HALB(Semifinished products) -> standard price
- FERT(Finished products) -> standard price
In which case and why is useful to change these standard setting in material type?
What is difference between standard price and moving average price?
When and how to use it?
Standard price are used for products that do not fluctuated frequently. It is usually used for finished or semi finished products.
Moving average price are used mainly for raw materials that are purchased externally. The advantage of using moving average price for your raw materials is that your inventory costs will always reflect the current market cost.
SAP strongly recommends that you do not select price control V for semi-finished products and finished products, because doing so will very easily cause the calculation of unrealistic valuation prices. SAP recommends:
Price control V for raw materials and trading goods; price control S for semi-finished products and products.
If you nevertheless select price control V, take care in the following situations:
1. Unrealistic prices occur if materials are produced and also retire during one period (that is, the inventory at the end of the period is smaller than the total of aquisitions from production orders) and if, in addition, several production orders belonging to a material were finished in this period, and the production order settlement calculates variances at the end of the period. Every single production order carries out an inventory coverage check and may therefore cause the moving average price to be changed. However, the individual production orders do not check whether the inventory available at the end of the period has already been debited by another production order.
Example: on 20 workdays in the period, 1 piece of material xyz was produced for each day and delivered to the warehouse at a price of USD 1000. At the end of the period there is 1 piece at the warehouse. Since an activity price of a participating cost center was higher than planned , every single production order calculates cost of goods manufactured of USD 1100 during the settlement. Every single one carries out a inventory coverage check and finds out that the variance can be posted completely to the inventory. That is, the ending inventory of one piece is debited with USD 20 x 100 and it consequently receives a price of USD 3000.
1. A settlement is carried out although not all costs have yet been posted to the order. This can even result in a price of 0 for the delivered product.
2. No period check of the costs is carried out on the order, that is, costs from previous periods may be settled.
3. Settling orders is already possible in the 'Delivery completed' status.
Solution: Standard price for products together with possible manual price changes.
If you are required to valuate semi-finished and finished products with actual prices that correspond to the costs of the actual production, SAP recommends you use the function of the material ledger for this. Here, a periodic actual price is created that is calculated on a much more reliable basis than the moving average price. A so-called price limiter quantity is used which makes sure that in the above example price differences are proportionally taken into account (95% of the total price differences) when valuating the 19 pieces withdrawn from material xyz which results in a periodic actual price of 1100 USD. In addition, it is possible as of Release 4.5 to even take into account the variances of the actual prices of the raw materials in the valuation of the semi-finished and finished products that are manufactured from it.
If we select std price for any type of material or mav and then make po, it will pick from material master or what?
The Purchase Info Record have the FIRST priority. When no po info record is found, the Purchase Order will pick the user LAST enter price. The PO module do not pick up any price from material master.
Regards,
Ashok

Stock of material and moving average price for each valuation type

Hi
Is anybody aware of any standard report which will show the stock of material and moving average price of the material for each valuation type.
M5BL is one report but would like to check if there is any other report.
Regards
Vaibhav Mahajan

Hi,
Check MB52, select 'Display batch stock' option.
Batch is nothing but your valuation type.
You can see those details there.
Regards,
Piyush

Copy Standard Cost to Moving Average Price

Dear All,
We are maintaining the materials with price control as Standard Price and moving average price is updated and used only for statistical purpose.
I have a requirement of copying the standard price to moving average price field just after the standard costs have been released.
We have used CK40N to complete the calculation and release of standard costs.
Please let me know which SAP standard transaction can be used for the purpose.
Regards,
Manish Gupta

Hi
Whats the need to copy std price to moving price?
I dont think there is any such t code to copy it.. But a weird work around is, if u r on ECC 6.0, you can change the price control from S to V and again V to S.. In this process, your price will get copied from S to V
However, not a recommended way of doing... If you do, you shud do this at a shot and blocking all others users
Regards
Ajay M

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These Variable rates will take into effect only when you check the "uses variable rate" check box in standard rate right?
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In order to create cost centers, you require a structure in master data maintenance to which you can assign cost centers. You create this CO structure, the standard hierarchy, when you create a controlling area. If this hierarchy is not present during controlling area maintenance, the system automatically creates the highest node there.

Alternate Hierarchy: The alternate hierarchy setting in the controlling area enables you to name up to two more alternative hierarchies (according to fiscal year), which can be used for the authorization check in the same way as the standard hierarchy (meaning, that inheritance logic is used). You can also deactivate the standard hierarchy as an authorization hierarchy, and use only the alternative hierarchy.
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Difference between standard benefits and advanced benefits

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What is the difference between standard,sorted and hash table

can anyone say what is the difference between standard,sorted and hash tabl

Hi,
Standard Tables:
Standard tables have a linear index. You can access them using either the index or the key. If you use the key, the response time is in linear relationship to the number of table entries. The key of a standard table is always non-unique, and you may not include any specification for the uniqueness in the table definition.
This table type is particularly appropriate if you want to address individual table entries using the index. This is the quickest way to access table entries. To fill a standard table, append lines using the (APPEND) statement. You should read, modify and delete lines by referring to the index (INDEX option with the relevant ABAP command). The response time for accessing a standard table is in linear relation to the number of table entries. If you need to use key access, standard tables are appropriate if you can fill and process the table in separate steps. For example, you can fill a standard table by appending records and then sort it. If you then use key access with the binary search option (BINARY), the response time is in logarithmic relation to
the number of table entries.
Sorted Tables:
Sorted tables are always saved correctly sorted by key. They also have a linear key, and, like standard tables, you can access them using either the table index or the key. When you use the key, the response time is in logarithmic relationship to the number of table entries, since the system uses a binary search. The key of a sorted table can be either unique, or non-unique, and you must specify either UNIQUE or NON-UNIQUE in the table definition. Standard tables and sorted tables both belong to the generic group index tables.
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table entries, since the system automatically uses a binary search. Sorted tables are appropriate for partially sequential processing in a LOOP, as long as the WHERE condition contains the beginning of the table key.
Hashed Tables:
Hashes tables have no internal linear index. You can only access hashed tables by specifying the key. The response time is constant, regardless of the number of table entries, since the search uses a hash algorithm. The key of a hashed table must be unique, and you must specify UNIQUE in the table definition.
This table type is particularly suitable if you want mainly to use key access for table entries. You cannot access hashed tables using the index. When you use key access, the response time remains constant, regardless of the number of table entries. As with database tables, the key of a hashed table is always unique. Hashed tables are therefore a useful way of constructing and
using internal tables that are similar to database tables.
Regards,
Ferry Lianto

What is the difference between Standard text and Text Symbols?

Hi,
1.Difference between Standard text and text symbol,?
2. Which we use Standard symbol?

Text symbol
Text symbols are symbols representing text elements. In fact, a text symbol can be defined for every text elements. The reading of the form is easier in the SAPscript editor. The name of the text symbol must not exceed 32 characters and its value 60 characters. The value assignement can be done in two ways:
- Using the following command: "/: DEFINE &SYMBOL&='TEST_SYMBOLE'"
- Using a standard text symbol.
The text symbol value is temporary stored. When the print program finishes the execution, the text symbol does not exist anymore. The text symbol must have a value when it is declared.
Also check this link,
http://www.supinfo-projects.com/en/2005/forms_sapscript_en/5/
Standard text are good, if you are using them in more than one SAPScript, because you have to maintain them only once, and not in every SAPScript.
It is really good to write rarely changing texts into the SO10 standard texts (for example company name, and address).
standard text is not always used in scripts. when ever u want to display some data u need to use standard text so that the data gets displayed. Say, u have a large piece of document which needs to be printed at end of script... rather than writing the whole thing in script, we create standard text using SO10 and then use the name along with standard text in script.

Standard and Moving average Price

Hi,
What is the Difference between Standard and Moving Avg Price, What are the Cases will we use Standard Price ,and what are cases shall we use Mov.avg Price, Please Explain me with Example.

Hi Lakshmi,
Moving average price is maintained for all the outside procured materials and standard price is maintained for all inhouse manufactured materials...
We need to run standard cost estimate monthly to update the prices of all the materials with price control S... Prices of materials with price control V will get updated as soon as we do GRN for the materials on the weighted average method...
Regards
Raj

Difference between Standard cost and standard price

Hi:
I have gone through google but i could not find any answer to the question clicking my mind. When we talk about standard cost and standard price..Should they be taken synonymously? Are these two same concepts... If there is any difference between two please do let me know..Similarly is there any difference between Actual cost and actual price. Please guide
Br

For Finished Goods, Cost is nothing but your manufacturing or procurement cost.
Where as Price is nothing but your sales price of the same Finished Goods.
Simply when you buy, it is cost and when you sell it is price.
Price includes cost + Profit or loss.
But from SAP point of view Standard Price field in Material master is Standard Cost.
Standard cost will be arrived when we manufacture or procure
Sale price will be entered in Sale order as condition value.

Difference between Item Cost and Last Evaluated Price

Dear All,
What is the difference between Item Cost and Price in Last Evaluated Price List. Exactly when are they updated?
Regards
Sibasish

Hi Sibasish,
The "Last Evaluated Price" is simply a price list but can't have a direct manipulation like other price lists. Its values may not involve in any accounting transactions if it's not selected for the concerned transaction any way.
On the other hand the item cost is the cost which is maintained by SAP B1 (until and unless you select the Standard Valuation Method), and it gets involved in the accounting transactions where inventory is involved. For e.g. the "COGS" is calculated on the basis of this value.
Please close this thread if answered ... or please let us hear something more from you on this...

VMI and moving average price

Dear all
Please help us.
We will use moving average price as stock evaluation.
Also, we manage all inventory is VMI stock.
Our business process is the following procedure.
1. We will increase consignment stock (VMI) without reference to purchase order.
2. We will input sales order and allocate it to VMI stock.
3. We will post goods issue, movement type 601-K.
As you know, accounting documents post GR/IR at this time. Unfortunately, SAP does not calculate moving average price (MAP) in material master. ie. moving average price is zero.
We would like to calculate moving average price because almost stock is VMI.
How do you customize SAP?
Best regards.

You have to add one more step to handle this scenario as per my knowledge
which is before you issue the stock using 601 K you have to take the stock in you own inventory and than issue using movement type 601 not 601 k.
As per the std SAP the 601 K M type will never update the value because that's not are stock
you can see the setting below
601     K     L                   2             VAX
601     K     L          WA03     2     GBB     VAX
601     K     L     E              2             VKA
601     K     L     E     WA03     2     GBB     VKA
601     K     L     P              2             VKA
601     K     L     P     WA03     2     GBB     VKA
601     K     L     V              2             VAY

Difference between Standard Pricing and Moving Average Price

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