Accounting view:Moving avg price and standard price

Dear Friends,
Can anyone explain what for these two fiels are maintained?.....also what difference it makes with the price we maintain thru pricing procedure(considering only PR00)?......can both the prices be at the same value?......Thanks in advance

hi
The system calculates the moving average price automatically by dividing
the material value in the stock account by the total of all storage
location stocks in the plant concerned. It changes the price with each
valuation-relevant movement.
The system changes the periodic unit price if you settle the material
ledger and then save the data.
The valuation of stocks at moving average price or periodic unit price
means that the price of the material is adapted to the continual
fluctuations in the procurement price.
Standard price
     Standard price of the material
Use
     The valuation of material stocks at standard prices means that all goods
     movements are valuated at the same price over an extended period.
Procedure
     Price variances (for example, purchase price higher than standard price)
     upon goods receipt or invoice receipt are posted by the system to price
     difference accounts. This does not affect the standard price.

Similar Messages

  • 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

  • Material Moving Price and Standard Price

    Hello All,
    what could be the reason for having both the Moving Av.Price and Standard price in Material Master of FERT?
    Can anyone explain me the business case
    Thanks
    Arshad
    Edited by: arshad ahmed on Apr 21, 2009 8:35 AM

    hi
    Standard price for FERT, it is assumed that the FERT material is in_house produced and is subject to costing, that is price will be subjected to changes due to reasons which are internal. for example Inhouse cost run, manual change or costing during confirmation. This price becomes the basis for sales of teh product, where we further add other expenses like transport/insurance/ handling  or any other  cost before sellling it.
    Moving Avg price means that the material is subject to price Variations due to Procurement or trading activity as it is a Finished material. If only activity would have been Trading then might be HAWA could have been the solution, since Procurement is involved the Moving Price indicator is there for weighted avg price updation of the material.
    Best regards

  • How to get Moving Average Prince and Standard Price in BW (inventory cube).

    Hi All,
    Could anyone please suggest us how to get Moving Avg. Price and Standard Price for 0ic_c03 cube, i had gone through 0CO_PC_ACT_05 and 0CO_PC_ACT_02 datasource but it is not going to solve our purpose.
    In SDN i had gone through few links and understood that we have to work on 0MAT_PLANT info object but i hav't not found how to work on this, though i found few SAP notes which are related to MAP. (869892, 819464, 863644).
    Probably some one might worked on these MAP and Std. Price, if you could share your work which us that will be a greate help.
    Highly appreciated if you share the code and steps how to work on MAP and Std. Price.
    Thanks in Advance.
    Akash

    Hi,
    You need to enhance the Standard DS of Infoobject 0MAT_PLANT and Infoobject 0MAT_PLANT  to include these 2 fields.
    And you need to enahance the 0IC_C03 cube to include  0MAT_PLANT and need to complete the mapping in all 3 Update rules for this added Infoobject.
    <b>And you need to upload the attribute data of 0MAT_PLANT as full upload every day.</b>
    In the reports , you need to dependent on Formula varibles with replacement path with standard price an MAP price attributes of  0MAT_PLANT. So if you go with these formula variables with replacement path, you should take 0MAT_PLANT characterstic into rows as a prerequiste.
    If you want to  avoid this prerequisite, then take a look on How to calculate with attributes values.
    Other wise you need to do the calculations at 0MAT_PLANT level by a base query after every upload,and the result should be stored in TODS by APD .And then you can final report with out 0MAT_PLANT in rows upon this ODS.
    You can see my contact details in my business card.
    With rgds,
    Anil Kumar Sharma .P
    Message was edited by:
            Anil Kumar Sharma

  • CS11 &CS12- Moving Price and standard price not appering for items

    Dear Gurus,
    CS11 &CS12- Moving Price and standard price not appering for items.
    is it a bug for my system alone\.
    or a bug overall in SAP itself.
    Pls advise.
    Siva

    Dear Siva,
    Its the standard functionality of SAP.
    You will not get any cost related data in the reports like CS11,CS12,CS13.
    You can try CK13N(which shows the components of the BOM along with the cost) or else CK86_99.
    At Functional module level execute this one CS_BOM_EXPL_MAT_V2 and ensure X is included for the
    input field MBWLS.
    And also check these SAP notes 177006 and 686509.
    Check and revert back.
    Regards
    Mangalraj.S

  • Moving average and standard price both maintained

    Hi,
    I have maintained both moving average price and standard price in material master, price control is V
    is there any impact of standard price any where in the system.
    Regards,
    Ali

    Hi,
    The system considers only the price maintained in price control V or S.So Which ever price is maintained it will consider only that. As an example if you maintain price control as S and give standard price, So when you do GR against PO with different prices, You can see that system even calculates moving avg price for statistical purpose and same can be seen in material master. For for the transaction purpose only standard price will be considered.
    Regards,
    Atal

  • Report displaying Material Standard Price and PO Price

    Hello Experts
    We have materials which are purchased. Price control is maintained as standard price and standard price is maintained using T Code MR21 periodically.
    Due to this when PO price is different from standard price maintained in material master (usually PO price is higher than standard price) all price difference are posted to price difference GL at the time of GR.
    Now users want to check variations between standard price and PO price for the material receipts.
    Can anyone suggest me any report which provides details of standard price and PO price for the material receipts?
    Thanks in advance for your help.
    Satya Alapati

    Nothing std I'm aware of either.  You could consider using the messages 06 205/6/7 to get a warning at the time POs are created that price varies significantly from std.
    Config help text below:
    Set Tolerance Limits for Price Variance
    In this step, you define the tolerance limits for price variances.
    When processing a purchase order, the system checks whether the effective price of a PO item shows variances compared with the valuation price stored in the material master record. In addition, it checks whether the specified cash discount value is admissible.
    Variances are allowed within the framework of tolerance limits. If a variance exceeds a tolerance limit, the system issues a warning or error message.
    In the SAP System, the types of variance are represented by the tolerance keys. For each tolerance key, you can define percentage and value-dependent upper and lower limits per company code.
    Standard settings
    The standard SAP System supplied contains the following tolerance keys:
    PE Price variance, Purchasing
    Tolerance limit for system message no. 207. This message appears if the specified effective price exceeds the predefined tolerances when compared with the material price.
    SE Maximum cash discount deduction, Purchasing
    Tolerance limit for system message no. 231. This is a warning message, which appears when the specified cash discount percentage exceeds the predefined tolerances.
    Note
    You can specify whether the system message appears as a warning or error message using the menu options Environment -> Define Attributes of System Messages.
    Activities
    Maintain the tolerance limits for each tolerance key per company code.
    Regards,
    Nick

  • Why negative stock is possible for Moving avg price & not standard price?

    why negative stock is possible for Moving avg price & not standard price?

    Hi,
    Negative stock is available for both MAP as well as Std. price.
    Eg.
    MAP-->
    1. Mtl with MAP 1 Rs/pc & stock of 10qty.
    2. GI done for 15 pcs. Each pcs evaluated with 1Rs (MAP). Stock value reduce by 15Rs. Offsetting entry takes place in consumption account of 15Rs. The stock and stock value is -5 each.
    3. Post GR of 10pcs with PO price 3Rs/pc.
    Now GR/IR should credited with 30Rs.
    Negative stock (which issued) with 1Rs. But incoming mtl. is of 3Rs/pc. So difference of 2Rs for Qty 5 (Neg. stk) of 10Rs. will posted to Price Difference account. And remaining 20Rs posted to stock account.
    Std. price.--> step 1,2 remain same
    3. Post GR of 10pcs with PO price 3Rs/pc.
    Now GR/IR should credited with 30Rs.
    Durin GR Stock account posting will be 10Rs but due to negative stk value the net stock value will be 5 Rs. Remaining 20Rs posted to price difference acct.
    Regards,
    Sandeep

  • Moving average prices and std prices

    hi friends,
    i have a doubt abt prices...
    which will b assigned for raw materials-standard price? or avg moving price? and why?
    if possible explain clearly about avg.moving price and std.price
    for spit valuation what price we will use??
    help me out..
    thanks in advance...
    venkat

    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
    We recommend that you only use price control V for materials procured                          
    externally. Materials produced in-house should be subject to a                                 
    standard price control.                                                                        
    Generally all raw materials (ROH), spare parts (ERSA), traded goods (HAWA) etc. are assigned as moving average price (MAP)  because of the accounting practice of accurately valuating the inventory of such materials. These materials are subject to the purchase price fluctuations on a regular basis.
    The semi-finished goods (HALB) and finished products (FERT) are valuated with standard price because of the product costing angle. If these were to be MAP controlled, then finished/semi-finished product valuation would fluctuate due to data entry errors during backflushing of material and labour, production inefficiencies (higher cost) or efficiencies (lower cost). This is not a standard accounting and costing practice
    For Split valuated material it is recommended to use Moving average price

  • 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,
    VB

    Thanks 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

  • 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.

  • Report for MM for seeing the material old price and new price

    Hello friends,
    For the ROH material we are maintained the Moving average price. So that material is calculated the average price of that material,
    Know My clint wants old price of that  material i.e. one year before And
    he wants comparison report for old price and new price of the all raw materials
    is there any reports are there  such kind.
    Regards
    Pramod

    Hi Pramod,
    If you want to view the old and new prices on a frequent basis, u can go for an
    ABAP query (SQVI) with the base table as MBEW.
    Cheers
    Arun.

  • Your Price and Retail Price are showing same value.

    In my Catalog section display routing page "Your Price" and "Retail Price" are showing same value. How can I resolve this issue?

    Hi Ashish,
    The CUSTOMER context for qualifiers is supported at the Item / Cart levels.  However, it is only supported in the Catalog when using Best Price.  If using minisite based pricing, "IBE: Use Price List Associated with Specialty Site" = Yes,  and/or customer account pricing, "IBE: Use Customer Account Price List" = Yes,
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    As per the documentation link referenced above -
    Pricing Qualifiers Supported by Oracle iStore
    All of the pricing qualifiers that are supported by Oracle iStore are supported at the shopping cart level -- but in the catalog pages, a only subset these supported attributes are available to the pricing engine.
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    The discount will not be applied in the catalog with a CUSTOMER context qualifier on the modifier unless using Best Price for pricing.  This behavior is discussed in the (Doc ID 429657.1)
    Regards,
    Debbie

  • Find out the Selling Price and Unit Price.

    Hi All,
    Am trying to get the Selling and Unit Price Before an Order Creation and Quote , from the API of " QP_PREQ_PUB.PRICE_REQUEST " ,. based on Item ID , Quantity and two Modifiesrs(Price List ID and Order Type ID).
    i can get Selling Price and Unit from Temp table " qp_preq_lines_tmp ". after execution of Above API .
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    I Dont' know what step i missed .
    Have anyone developed similar API for getting the Selling Price and Unit Price for an Item ?.
    Any suggestions are appreciated.
    Regards,
    Shan

    Hi Shan,
    I saw your posting on Oracle forum that is why I am sending this email to you.
    I have been using QP_PREQ_PUB.PRICE_REQUEST to pass item to get item list price thru Oracle Price Engine. I get Item list price without any issues the only thing I am stuck is when that item has multiple modifiers then item price I get is without applying modifiers.
    My case: When Item KD653 3/3MAT has 'X' price list and price of that item is set to 600.00. I have a modifier defined and that includes/qualifies above item for 10% discount. So when I pass my pameters like inv_item_id, list_header_id etc I get 600.00 not 540.00. So I am passing two lines one for regular item list price (600.00) and second for modifier that I have created for this item.
    Result: I get 600.00 Item Price but I don't get modified (10%) price applied to unit price. Also it doesn't recognize my list_header_id that I am passing for my modifier.
    I may be missing something to trigger the modifier part. If you got case details then that will be great.
    Your help will be highly appreciated in this case.
    Regards,
    Prakash

  • T-codes for uploading material prices and domestic prices?

    t-codes for uploading material prices and domestic prices?
    regards

    Use Transaction VK11 and VK12 based on Condition type for price .
    Please reward if useful.

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