Standard vs Moving Average Price
Dear SAP Gurus
Can anybody pls explain the significance of Moving avg and Standard price of Material.
Thanks & Regards
Shalini
The standard price or moving average price in material master is used to determine the value of the inventory.
Standard price are used for products that do not fluctuate frequently. It is mainly used for FG 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 raw materials is that the inventory costs will always reflect the current market price.
If the material is valued at a standard price,
the difference between the purchase order price and the standard price will go to a price difference account.
If the material is valued at a moving average price, the difference between the purchase order price and
the moving average price will NOT go to a price difference account. The moving average price will simply be adjusted.
Similar Messages
-
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.
ThanksDear 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 -
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~
DawnHi,
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 -
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 -
Costing with Standard and Moving Average Price
Hello All,
I understand that SAP recommends Std Price for Semi Finished /Finished goods and MAP for trading goods and raw materials.
How does costing takeplace when it includes both the materials - semi finished and trading goods.
Is it possible at all?
Any suggestions will be helpful.
Thank You,
AndyHiya,
You may want to frame your question differently.
When what(?) contains SF and Trading Goods? BOM? Costing Run?
The Std Price and MAP you mentioned are the Price Control Indicators. These dictate the price to use and the treatment required for the material (realtime stock value updation during the month with GR/GI for MAP and no value updates for SP).
By itself, it does not affect the costing of (say) a BOM containing both these materials together... the system determines what price to use and costs the product accordingly.
Cheers. -
SAP allows release of Standard Cost for Material with Moving Average Price
Hi
We set our Raw Material to use Moving Average Price (V) and price determination 2 (single level). And we activated material ledger.
During mass calculation of standard cost (CK40N), If user accidentally forgot to restrict the Raw Material for being included in calculation, the system calculate standard cost anyway, even though I set it as Moving Average Price. And user is able to release it too without any problem.
Why the system does not restrict it? By giving error maybe. Although as for now I can not find the wrong effect from releasing standard cost for MAP material, by your experience, is there any side effect that I should be aware of?
ThanksCK40n is mass release of all materials. The release is not dependent on price indicator of the material in the master. It will calculate standard cost of all the materials.
Releasing standard cost estimate of raw materials does not have any side effect as long your calculation is based on moving average price.
Regards
Divraj -
Report on Standard Prices & Moving Average Prices
Hi,
Would like to have a report on List of Materials with Standard Price & Moving Average Price per plant?
Though we use Standard Price, since material master also gets updated with Moving average Price.
Regards,
VengatHi,
Try MM60 tcode, see if it is suitable to you.
It shows you both (average / standard price)
Best Regards,
Natan -
Moving average price/standard price via iDoc
Hi,
I would like to distribute moving average price and standard price on price change (price changed via transaction event or MR21) to external system.
Is there a way to accomplish iDoc (MATMAS) triggering on price change?
Any idea on how to track changes?
Searching through forums I found that MATMAS will not trigger on MAP change via transactional event, GR, GI...
ThnxDear Amit,
yes - I understand how the system calculates the MAP. However, the receiving system is a SAP WMS - In WM there is no inventory management nor FI/CO. The valuation would always be zero. So I'm interested how can I update it via ALE?
It works for the first time if I have no valuation (accounting) view in the material and I send an IDoc with the view definition segment and a value for VERPR. But updating isn't possible.
Gunter -
Moving average price and standard price
Dear All,
Its simple question can any one explains me what is the difference between moving average price and standard price and how the posting will happen with these two price controls and what will get updated.Dear Tiru,
There are two types of price control as below:
a)Moving Average Price (MAP):
-If PO and or Invoice price was differ from material master record, the difference was posting
to stock account. Therefore the valuation price will change.
b) Difference between a PO price or invoice price and the material master are posted to price
difference account(PRD). As a result, the price in material master remain same.
Example:
Material Master Record:
Total Qty: 10, Total Value 20, Price 2
Scenario:
PO: 10pcs at 2.50 EUR/PC
Good receipt 10 pc
Invoice 10 pc at 2.50 eur/pc
a) MAP:
Posting:
Stock Account GR 25 +
GR/IR Clearing GR 25 -, IR 25 +
Vendor Account IR 25 -
New Material Master ,Result:
Total Qty = 20
Total value = 45
Price = 2.25
b) Standard Price:
Posting:
Stock Account GR 20 +
GR/IR Clearing GR 25 -, IR 25 +
Vendor Account IR 25 -
Price difference Account(PRD) GR 5 +
New Material Master ,Result:
Total Qty = 20
Total value = 40
Price = 2.00
Hope this help.
Loke Foong -
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 GuptaHi
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 -
Moving Average price convert into Standard Price
Hi SAP Guru,
Can we change Moving Average Price into Standard Price .
from all the Material Type .
Yr Quick action will be Highly appreciated.
Thanks
PranavDear Pranav,
You can chnge the price but before changing please go with below links
|http://help.sap.com/saphelp_46c/helpdata/en/47/60ff6249f011d1894c0000e829fbbd/frameset.htm]
Change price control from "V" to "S"!!
I hope you will find it easy.
Regards,
Manjunath B L -
Moving average price & Standard price
Hi every body
For one material some times we use moving avareage price and standard price for that material
Which scenerio we use this & why we have to use this,can any body explain me
ThanksHi Tarun
Both, Moving average Price and Standard Price are Price Control Indicators.
It Indicates the price control used to valuate the stock of a material.
Standard Price : It is a constant price at which a material is valuated without taking goods movements and invoices into account. It is normally used for finished Products - Fert ( Vlauation Class - 7920)
Moving Average Price : It is a price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material.
The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.
It is Normally used for Raw Materials -- ROH ( Valuation Class -3000)
Rewards points ,if usefull
Regards
Palaniappan -
Importance of Moving average price & standard Price in a material
Dear All ,
Can ne one tell me that what are those prerequisite that one material is kept at std. price & other material is kept at moving average price in material master , pl guide .
Rgds ,
sap11Hi,
Mpving average price:
Qty (new) = Qty (old) + Qty (receipt)
Value (new) = Value (old) + Qty (receipt) * Price (receipt) / Price Unit (receipt)
Price (new) = Value (new) / Qty (new) * Price unit (mtl master)
Also refer to this linke & am sure your queries will be answered:
|http://help.sap.com/saphelp_erp60_sp/helpdata/en/47/60ff4849f011d1894c0000e829fbbd/content.htm]
Standard Price:
When a material is valuated at a standard price, the system calculates the value of goods movements in the following way:
[http://help.sap.com/erp2005_ehp_04/helpdata/EN/47/60ff4849f011d1894c0000e829fbbd/frameset.htm]
Thanks
Utsav... -
Material with moving average price ,while posting grn act as standard price
hi gurus
i have a material with a moving average price , according to moving average price during grn posting no price difference account should be created at any circumstance , but while i posted grn , i am getting stock account - wip 14407.98 , GRIR - DM 16800 -
Price difference matl trns - 2392.02 WHY THESE PRICE DIFFERENCE CREATED i have maintained only moving average price in accounting view
regards
Leohi
In SAP we have two price control moving average price and standard price
In MMR if u using Moving average Price if any difference in price it will post it to stock account
but in case of standard price it post it o PRD account (Price diff Account)
Regards
AKM -
Moving average price for Standard price estimation
Hi All
We have 3 Costing variants for Legal valuation, Group valuation and Profit center valuation which has a valuation variant with strategy 1. Planned price, 2. Moving Average Price and 3. Standard price. When Planned Price is missing system is supposed to pick up MAP as the standard price. But I am not able to understand, when MBEW holds, old MAP, where from system is picking up the latest Periodic Unit price for calculation of Standard price for PV and GV, whereas for Legal valuation it is picking up the MAP as in the material master or MBEW table.
Please help
Regards,
VBThanks a lot praveen for your quick reply,
we have kept MAP and STANDARD PRICE for all materials wheather it is V or S,
and kept costing variants active for both standard as well as moving average price.
Standard value will be picked for planned and actual from MAP.
But what we have done that as i told earlier for all materials we have updated with MAP and Standard price.
so my question was will it get any reverse effect on material valuation.
Waiting for your quick and valuable reply
Rgds
Ana
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