Does moving average price work with multiple valuations?

Dear All,
I have activated multiple valuations: Legal, group and profit center.
I have activated ML/Actual costing for this multiple valuations too.
Now I have 3 price fields in material master.
Could I use moving average price for some materials types in multiple valuations?
Thank you,
With best regards,
Kamila.

Hi Kamila,
yes, ML is always activated for all materials in a plant. To use MAP you have to set the price determination of a material to '2':
This is the F1 help of the field price determination:
Material Price Determination: Control
Specifies how the material price determination should procede.
You have the following options:
With price control V in activity-based material price determination (indicator2 in the material master), the moving average price is calculated. With price control S, the material is valuated with the standard price and the moving average price is calculated for information purposes.
In single-/multi-level material price determination(indicator 3 in the material master), the valuation price (standard price) remains unchanged and a periodic unit price is calculated for the closed period.
This option is only for materials with price control indicator S,and is only recommended if in addition to multiple currencies and/or valuations, you use single-/multi-level material price determination.
In single-/multi-level material price determination, a periodic unit price is updated for information, but it can only be used for material valuation in the closed period.
Dependencies
The indicator is only of use if the material ledger is active.
Upon activating a valuation area for the Material Ledger in Customizing, you can enter what type of material price determination will be proposed when creating a material in that valuation area. This proposal will be ignored at production startup: the system automatically sets the indicator to 2 in the material master for all materials present.
If you want to change the indicator for a particular material later, choose Accounting -> Controlling -> Actual Costing/Material Ledger -> Environment -> Change Material Price Determination.
best regards,
Udo

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Moving average price calculation logic of material with Price Control "S"

Dear Gurus,
As you know that there is a Moving price and standard price icon in the material master.
I want to understand the calculation logic of the moving average price of the materials having price control "S"
How the system calculates the MAP for standard price materials? The receipt from the process order I suppose is valuated at the process order cost after settlement, but if the issue has hapened for the material does the system recalculate the issue price also?
Below is the sample process order receipt and issue scenario:
Receipt from process order 161000000223
300 kg and GR at standard cost value is Rs 5892
Issue to process order 162000000294
250 kg and GI at standard cost value is Rs 4910.
Thus the balance at period end is 50 kg and balance at standard cost value is Rs 982.
Here in process order 161000000223 the actual cost is 10 Rs. Then how will the system calculate the MAP?
Thanking You,
Amit Dhanurdhari

Hi
Try the following calculations,
One of them will work depending upon your version and support pack
Expected MAP calculation ( As with price control V)
= ((Qty before transaction*MAP + Transaction Qty * transaction
Price)) / quantity after transaction
New Method ( when price control is S)
= Old MAP + (Price Variance w.r.t Standard Price/Qty after transaction)
Also go through the following notes,
Note 1225167
1253944
518485 FAQ: Valuation of goods movements
212286 Overview note: Valuation during goods movements
209864 Moving average price is disproportionately large
202166 Collective note: Statistical moving average price
185961 Moving Average Price Calculation
I have done extensive research on this, let me know if you need to know something specific.

Changing of Inventory Valuation: Standard to Moving Average Price

I work at a service-based company and have also been asked to research the impact involved with switching our inventory from standard price to moving average price.
Scenario: Change material type TRAD (trading goods) from standard price to MAP.
Process: Change settings in SPRO at the level of u201CDefine Attributes of Material Typesu201D. Currently, this is set for u201CStandard priceu201D with the indicator u201CPrice ctrl mandatoryu201D set. Upon change to u201CMoving average price/periodic unit priceu201D, Iu2019m thinking I need to de-activate the u201CPrice ctrl mandatoryu201D field so any current materials with an u201CSu201D in the Price control field on the Material Master Accounting 1 tab can be changed to u201CVu201D. Is this correct? Also, is there a program that already exists to mass update the Price control field on the Material Master? If not, I was looking to create a CATT for this changeu2026.any other ideas? In some of the forum posts it was mentioned to use t-code MR21 however, even with the u201CPrice ctrl mandatoryu201D field de-activated, the Price control column is grayed out.
It was mentioned in a previous post that all open documents (PO to IR) need to be completed before changing the price control setting, at what point does this stop the process? Does SAP generate a system error message?
Also, any suggestions as to when this price switch is best to take place like after inventory?
Are the above mentioned areas the only areas I should be concerned about or am I missing some areas that should be addressed?
P.S. We do not use have our ML (material ledger) activated or use split valuation.
Thanks~
Dawn

Hi,
If you want to change material from standard to moving average price, Follow the below process
1)first the material quantity and value should be zero
2)if you want to keep value and quantity and want to change price control in future you have to create new material with price control "V' and lock the previous material for posting.
Regards,
Sreekanth

Moving Average Price for Non-Valuated Material

Hello Experts
The question may seem to be quirky but need your advice for the below.
My client is buying non-valuated material against a cost center, they do not want to keep the stocks valuated. No value update only quantity update. The accounting documents are the following when the GR is done by receiving folks
Qty of material XYZ goods receipted = 10
Debit     Consumption GL   12345678       10 USD          Cost Center ABC123 (This is a warehouse cost center)
Credit    GR/IR account                            10 USD
Qty of mateiral XYZ issued = 5
The goods are later on issued to Production cost center and the client was the below entries to be passed with MOVING AVERAGE PRICE.
Debit    Consumption GL 12345678           6 USD          Cost Center ABC456 (This is production Cost center)
Credit   Consumption GL 12345678           6 USD          Cost Center ABC123 (This is warehouse cost center)
I am aware that as this is a non valuated material the above entry is not possible. Maybe, I will use BAPI_ACC_DOCUMENT_POST for the generating the accounting document when the goods are issued from warehosue to production center.
My question is how can i get the moving average price.
Regards
Chokkalingam Pillai

you can have an accounting view for non-valuated materials, this helps for example with purchase requisitions as they could take the valuation price from the material master and the user does not need to enter a valuation manually.
But the material master moving average price cannot be calculated and updated automatically, as it is not foreseen in any standard program to do this for cost center procurement, since SAP only calculates a MAP for valuated stocks.
Further it is not logical to issue non-valuated stock valuated (even with a different price) from cost center to cost center.
It looks like you want to have a kind of internal billing for warehouse services, as you end up with a negative amount in the warehouse cost center which is then the profit.
Why don't you just create a report to run at the end of the month, listing all goods issue movements with their cost centers and taking the price from last PO (or from material master if you decide to maintain it manually) and use this for a manual cost center posting in CO module

Moving Average Price does not get updated for Project Stock

Hello Experts
We have an Engineer-to-Order implementation for our client. Accordingly procurement is done per project. Each Project issues its PRs which are then converted to POs and recieved into Project Stock.
While assigning the material to the Network activity in Project (using material component) the system uses the price found in the material master (MAP or STD) as a planned cost appended to the project.
Problem:
while procuring the material, when we receive it into Project Stock (Mvt 101 Q + ) the Moving Average Price in the material master does not get updated. this way all newly created material master will never have a moving average price, thus whenever we try to assign them to the project we receive an error message (Cost for Material Component ###Mat.Num### cannot be determined.
Question:
How can I get the system to update moving average price (for all types of stock) based on procurement for project stock.???
Your help is kindly appreciated.

I'm sorry for the confusion
Case:
The T-code is CJ20N Project Builder in PS module
we are assigning material components to network activities under a certain WBS element in the project.
there is a function in the Project Builder to calculate the cost of a network. it uses the costing variant assigned to the network which is PS02 (We get the error here)
The costing variant has a valuation variant which lists a series of strategies to get the material price. Planned 1 if not then STD if not then MAP. (you can choose between many options via a drop down menu) you can choose 5 consequent options.
The MAP that the valuation variant is coded to get is the Plant Stock MAP -- Or the Project Stock MAP but only Per WBS element.
The MAP that the Actual postings update is the Project Stock MAP only Per WBS element.
This means that if you use a material component to purchase material 123 Acc.As. Q for WBS X for 10 $ then you try to assign a new material component with the same material 123 to WBS Y, the system will not get a MAP. because it's stored in QBEW per WBS element.
This way the system will never get the MAP right.
However, we don't always use project stock to procure for projects, for some requirements we can assign and use plant stock as well for Projects. that way we need the MAP from plant stock.
In the Valuation Variant you can use a User Exit Strategy. The user exit's name is COPCP005
My Suggestion is:
Use the User Exit COPCP005 to calculate the { Total value / the total quantity (MAP) from QBEW + Total value / total quantity (MAP) from MBEW } / 2
which is the MAP for both plant and project stock together, since that we are going to use both.
Q: Is this correct !?

Moving average price based on valuation type for material

Gurus help needed.
we want to maintain the moving average price of the material in the pricing, and this depends on the Valuation Type. We have 3 valuation types.
If valuation type is blank then one MAP(Moving average price) value will come and if nn one map will come and for nn one map will come.
We have copied VPRS conditon type to YVRP and changed conditon category as T( Moving cost).
But in pricing the YVRP price is not picking from valuation type which is blank.
Where can i make the settings to tell the system to pick the moving average price from the material master where the valution type is blank always based on the condition.
Do we need to creat a routine? If so is there any standard routine which we can use or make minor changes to it?
If it is a new routine please tell me how to start with VOFM?
Note : We need the value to come automatically from material master same as VPRS.

Hi
The first method is not to set the pricing condition VPRS as statistical.
Simply remove PR00 and it will work fine if you always use VPRS as your pricing base inside the pricing procedure.
VPRS will reads both prices based on the price control in the material master.
Price control S for standard price.
Price control T for moving average price.
It is this simple if you do not have any other "Prices" in the price procedure.
However, if you are using one pricing procedure where for some items you price using VPRS and some others using PR00, then you should use requirement routines to enable the correct price condition type at the right time.
The second method involves more work as you need to write a formula (VOFM) to get that information.
This is how it goes :-
1. Set VPRS to be the first step in the pricing procedure and to be subtotal B (as standard).
2. Set PR00 with alt. calc. type formula, which sets the value of PR00 to be equal to the subtotal B.
Step 1 VPRS statistical, subtotal B, reqt 4
Step 2 PR00 Altcty 600
With regards
baalakrushnan.da

Moving average price in case of goods receipt with free of charge

Hello everyone,
Need some inputs......
Sometimes we receive materials from suppliers free of charge (e.g. warranty replacement) u2013 moving average goes down u2013 worst case 0,01 EUR/piece. This causes problems in government reporting and export documentation EX1 and clearance/pro-forma invoice) for deliveries to field engineers (Order type ZIS1, ZIS3 u2013 item cat. ZICA), because moving average price is used for the values in government reporting and on the invoices. In government reporting and on invoices we need to state a true value of the part.On the other hand, the value warehouse stock is depending on the moving average cost as well.Could you please let me know, how to handle such receipts from the supplier to have a correct stock value and correct values on invoices and government reporting?
Thanks
Deepthi...

Hello Deepthi,
It depends on your company policy. If you want to valuate the material along with the material purchased handled in moving average price, free consignment will bring down the MAP for the material.
In that case, you can revaluate the material to the original price in MR21 transaction.
If you are not going to handle the materials received free of charge along with the purchased material, you can go with another material code, with non valuated material type.
But i guess, no company will be asking for another material code. So go for revaluation after the receipt of free consignment.
Regards

FIFO with moving average price

we are using for own produced goods "moving average price" and Material ledger. At month end we setlle production variance . The system also creates an entry for ML "price variance" (which is the percentage of the prodcution variance for the remained stock).
When we run the document extract (MRF3), with the option of "Order settlement", the costs include not only the production variance but also the ML line. That is too high.
When we run it without selecting "Order settlement" the adjustement is the reversal of the price variance (the ML line item). That is too low.
The total costs should be only the total production costs.
One cannot exlude it by the material movement as both "price variance" and "production variance" is not part of a material movement.
Edited by: Hendrik585 on May 27, 2011 2:16 PM
Edited by: Hendrik585 on Jun 5, 2011 11:36 PM

hi,
We need to follow the steps if we need to valuate our inventory by means of FIFO Scenario :
1. In T-code OMWE, activate the balance sheet valuation as LIFO Valuation not active & FIFO Valuation active.
2. In T-code MRLH, FIFO Maintained at company code or plant level.
3. In T-code OMWL, set mean receipt price at valuation ares level if Plant or at company code level if at company code level.
4. Configure FIFO Valuation ares for teh respective year.
5. In T-code OMWP, Configure FIFO Method.
6. In T-code OMW4, Movemnet type settings for FIFO maintained. Generally, no chnages made.
7. Select material for FIFO in Tcode MRF4.
8. Execute FIFO Valuation- Tcode MRF1.
Hope it helps..
Regards
Priyanka.P

MTS variances with moving average price

Hi expert,
Is it possible to satisfy this requirement for cost estimate and variances in make to stock scenario ?
-Actual cost at Moving average price for all article
-Calculate cost estimate for articles and write it on standard price field with strategy that read also standard price
-Calculate planning and production variances for all the Make to Stock PP order?but stock must be update with Moving average price.
My doubt is how can i have variances detailed if i manage article with Moving average price.
How can I have variances as "statistics" otherwise I would have double costs.
thanks

HI
If you manufacture some thing, its price control should never be V, else it ruins the inventory valuation forever
Consider the eg below if your price control is V
1. Your moving price in mat master is 100 USD
2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and at period end if Qty is lying in stock, 10 variance will also be inventorized
BUT, now consider this
1. Your moving price in mat master is 100 USD
2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
3. You Mfr on Jan 10 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
4. On jan 15, you consume Qty 1 and qty lying in stock is 1
5. In period end, when you do settlement, following will happen
a. For prod order 1: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
Mvg Avg price will shoot upto 110
b. For prod order 2: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
Mvg Avg price (MAP) will shoot upto 120
System wont check whether the qty lying in stock pertains to prod order 1 or 2... It will simply check if the Qty of prod order matches with qty lying in stock. hence, it will keep on inventorizing variance in this case.... and your MAP will touch the sky
Regards
Ajay M

Moving average price valuation across plants

Hi gurus.
Could anybody help to resolve the problem?
We need to valuate Moving Average Price for Materials across plants.
We use PP module and need to use Plant Valuation Levelu2026
Does any User-Exit exist which is called during valuation?
Thanks & Regards,
Igor

1. Both the consumption & the closing valuation of the raw-materials will be at "V" (moving average price).
2. When the materials are mantained at "V" (moving average price), there is NO price difference varaince. All the price difference flows to the material valuation itself.
Hope this helps you.

GL to get updated with Moving average price

Hi Guru's
when we do PGI, currently the cost of goods issue value is updated from Moving average price into a GL account,
Now i have created a new GL account and also want this new GL to get updated with the Moving average Price.
Where can i make these settings. can u give step by step solution.
Regards
Abhijeet

First u pls check how its updating with moving average price and select in MMRecord valuation class and price options, then check settings for ur gl account go to fs00 display mode check settings in control data.
Compare ur gl account which u have created with standard Gl account.

How to get moving average price in 0ic_c03 with back dating

Hi all,
The stock overview report in 0IC_C03 gives stock values based on Purchase value where as i need to calculate the stock value based on Moving average price, (so that it tallies with R/3 std report MB52), also need to get the stock value for backdating also i.e like MB5B standard report in R/3.
<removed by moderator>
Thanks & Regards
Suresh Putta & Ravi Y
Edited by: Siegfried Szameitat on Jan 19, 2009 12:12 PM

Hi,
The stock overview report in 0IC_C03 gives stock values based on Purchase value where as i need to calculate the stock value based on Moving average price, (so that it tallies with R/3 std report MB52)
--> Need to enhance 0IC_C03 for moving average price and need to multiple Quantity with price to get value. You can do this at extraction level(Transformation / update rules) or Query level.
also need to get the stock value for backdating also i.e like MB5B standard report in R/3.
Or Maintain material price as Material attribute and create a multiprovider on 0IC_C03 and Material and calculate value at query level. In this approach value getting derived based on available price only(means historic values may change if price changing over period of time).
Srini

Error: moving average price negative while doing MIRO

Hi Experts,
I am doing MIRo for PO where its giving me error while posting the Invoice that:
Moving average price for material is negative: XSEPSNPW045CX 1044
The MAP maintained in material master is 39,979.71 and in the invoice and GRN is 69,049.58.
Can any please help me to resolve this.
what would be the implications if the price difference is too high b/w MAP in Invoice amount.
and
what happen when we paintain the amount in mr21.
Regards,
Sonali.

Hi,
Pls check your price in MMR (MAP price) and then check the IR price of material ....
Example:
MMR MAP Price = 5.00 EUR
If IR price = 30 .00 Eur
IN YOUR CASE:
The MAP maintained in material master is 39,979.71
and in the invoice and GRN is 69,049.58.
So MAP PRice defined in the MMR is lesser than the IR price...
so the MAP will get negative...
Hope it helps...
Regards
Priyanka.P
AWARD IF HELPFULL
Edited by: Priyanka Paltanwale on Sep 2, 2008 7:49 AM

Materials with moving average price that have goods receipt without PO

We want to have materials on moving average price, but they are not purchased but are leftovers from production process that can be used again. As such we want to put them in inventory according to internally determined price but to use V price control in order to avoid reavluation of existing inventory when price changes. How this can be done as we don't have PO where to put the price. Maybe is possible to have dummy PO without vendor?

Hi there,
so there is never a "regular" GR or invoice? And the material will be put back to stock using movement Type 262, for example?
There is a way... Consider to activate the "External GA Amount" for the relevant movement type(s). You can do this by customizing the movement type's field selection, category "Materials management". Set this field to "optional". After this you can enter a value in the detail dynpro of the movement. Watch out, it is the value for the posted quantity, not a price... The valution price will be recalculated, the moving everage price will change, but there is no revaluation.
Does this help?
Kind regards from Germany,
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Does moving average price work with multiple valuations?

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