Finish and semifinish at moving average price

hello
I recently join a client, client set Finish and Semi finish material at moving average price. Normally in my last experience Semi and finish material at standard price. Through cost estimate we update standard price.
q. 1 ; what will be benefit of standard price calculation bcoz material are on moving average price.
q. 2 ; If we create a cost collect for a product, do u think we need to create process order.
regards
sapian

OK
we have created a product cost collector and then created an process order, confirmation made on process order.
when i check COR3 system do'nt show any plan cost on said order.
Can u explain step wise activity in case of Product cost collector from A to Z
regards

Similar Messages

Finished Goods valuation at Moving average price.

Dear Experts,
My client needs all finished goods are to be valuated at Price Control of <b>V</b> and it has to update the price in the material master when the production order is confirmed for finished goods on a real time basis.
Is there any configuration for this upart from changing the valuation type from S to V in the Material Master.
Please help on this. It is very urgent and I will be grateful for all of you.
Thanks and Regards
Sivakumar Subramanian

The valuation of material happens based on price control in the material master.
thanks
Ashok

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

Moving average price for semi finished products

Hi
Could anyone light on this issue,
Our client maintain moving average price for the semi finished material, need clarification on below points
1) What is the advantages and disadvantages due moving average price,
2) Which price in the material master after the production order settlement,
3) Is there any impact of this on WIP calcaultions
Thanks in advance
Mohan M

Hi
there are no advantages of it, ONLY Dis Advantages!!!
That will ruin your 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. 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

REM wip and moving average price

Hi,
I am working in REM scenario. my fert item is having moving average price say Rs 2.Currently zero stock of finished item. I am having a planned orderA quantity 10 from Oct 1st to nov 30th. when i do backflush at nov 30 , i do assembly backflush and post auto GR of 10 quantity. after doing settlement, i got my moving average price as Rs12.
I have another planned order B for quantity 20, same finished item from oct 15th to dec15th. On nov 30th when i am doing component backflush or activity backflush of second planned order( i am not doing assembly backflush on nov 30 because this order is not yet completed, it will complete on 15th December), system is posting all cost on my existing stock of finished item and increasing the moving average price of finished item from Rs 12 to Rs 17.
But this is wrong because cost should not exceed for existing stock, cost should be posted for WIP..
Please tell me how to correct this?
how to calculate WIP in REM? is it mandatory to go for reporting backflush? i have only one operation in my rate routing i.e labor hours is my only operation in 0010.
Regards.

Hi,
Thanks for ur help.
But my doubt is something different!
If i have a planned order' A'( qty 10)which is completed in Novemeber month and another planned order 'B' ( qty 20) which is still in WIP on November end, and at this stage if I do backflush for planned order A, cost flows properly and finished item is put in stock with some moving average price.But when i book labor hours again for planned order B, it books cost. But this time i do not do assembly backflush because production is not yet finsihed.so stock quantity is still the old one i.e 10 qty.So second cost booking goes to the stock item of 10 qty and increases the moving average price. system dfoesnt understand that second labor hours is booked for second planned order . this is happening because both planned orders are of same finished item.
please reply.
please tell me what is the way to do reporting backflush. what settign we need to do? can it solve my issue?? because my target is to book cost in case of second planned order as WIP and do NOT effect the moving average price of existing stock.
Regards.

Increase moving average price in a STO process

Dear all,
I have a STO (MM/SD) and I need to increase my moving average price in 10 %.
So, I added a new condition ZTPC in a standard price procedure RM2000 as attached.
My problem is I can only account this condition and increase my moving average price if the accruals is checked.
Does anybody could help me?

Hi,
If i understood you requirement correctly.
You are looking an new condition in existing STO standard pricing procedure;
RM2000
Stock Transfer Document
This new condition should add to existing MAP price in pricing procedure when ever it is manually updated.
You very well insert a new condition in the existing STO pricing procedure similar as A001 condition type with accruals tick.
You need to maintain an account key in your pricing procedure against new condition type with manual entry option.
You can create a new transaction event Key also follow the below path
OLME-->Conditions-->Define Price Determination Process-->Define Transaction/Event Keys
Goto OBYC and maintain the G/L accounts against your defined accruals and account keys.
After each goods receipt and accruals will get off set against the G/L account maintained in OBYC.
Rgds,

Moving average price date wise

Hi,
Is there any table to track date wise changes of moving average price?
Regards,
Sattuj

hi
u cant get it date wise but check following table MBEW
and field VERPR Moving Average Price/Periodic Unit Price
http://sap.niraj.tripod.com/id43.html
for the material prise change documents use table MLHD wiith field BELNR
regards
kunal

Moving Average Price from CO-PA

Hi there,
Apparently in my client`s scenario, the Moving Average Price of Material is best captured from CO-PA instead of the Material Master itself.
Can anyone shed some light on this please ?
If someone has experience in this, please let me know which CO-PA Extractor gives me the MAP Value for a Material

hi,
If you talking about extracting data to BW from CO-PA and calculating the moving average price or picking up a price field, then, there is no standard extractor. You will need to set up CO-PA for extraction in BW.
The sad news is that as the CO-PA tables in R/3 are based on customer specific scenario, fields would differ and there is no standard field structure. You will need to build the data source from scratch. The good news is that SAP has a brilliant How to document on CO-PA extraction. Follow the link below for more details.
https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/library/uuid/fb07ab90-0201-0010-c489-d527d39cc0c6
Rgds
Neeraj

Finished goods and Semifinished goods at moving average price

Hi,
Till time, we were running our business process for product costing based on Standard price for FG and SFG. We were taking Raw material and packing material with mvg avg price. Now for one of our new company we are planning to initiate cost of FG, SFG based on moving avg. price as per business requirement.
Can you please guide me which are the settings in product costing I need to take care for running my price for FG and SFG based on moving average price?
Thanks,
Taral Patel

Hi,
There won't be any difference settings for Price control V
Only accounting entry will change.
If you maintain Standard price then the Prod. variance a/c entry is
Production variance a/c Dr/Cr
COGM a/c Cr/Dr
If you maintain Moving AVG price then the Prod. variance a/c entry is
Stock Dr/Cr
COGM Cr/Dr
Rgds
Murali. N

Finished Goods at Moving average Price.

Hi Experts,
In my company FG maintained at Moving average price, during the Go-live they fed the value manually in material master of FG.
Now at the time of production conformation system considering BOM for consumption, but for cost of production system just taking the value fed in FG material master.
Please explain what is the impact if i maintain my FG at moving average, whether we can change that to standard price.
Please explain me briefly.
Regards
Sreenivas.P

Hi,
Ideally Raw Material, packing material should be maintained on Mvg Avg Price for your CO-PC (product Costing). Finished Goods / Semifinished goods should be maintained on Standard price only.
Actually once you maintain the same on Std price, So after your costing run the system will pick Std. price of that FG / SFG based following :
1. price of RM / PM from material components defined in BOM
2.Activity prices defined in KP26
3. Based on routing / master recipe, system will calculate activity defined for your resource / work center
4. Overheads from costing sheet
So, in Std. price of your FG / SFG, system will give all these details. While you go for your process Order / Production order, system will book actual cost of FG / SFG on production order. So, at month end when you run variance cycle, system will also give you variance between plan and actual.
Hope it will help a lot.
Thanks & Regards,
Taral Patel

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

Moving average price in Semifinished material.

Dear All,
Our client wants to go for moving average price in case of semifinished material, which is supposed to be normally standard price. The problem is the MAP is not getting updated after the GR against the production order. What settings I need to check in cusomization from PP point of view to solve this problem. Ideally the summation of cost of raw materials has to be the cost of semifinished material.
did the settlement and the MAP got updated. There are few questions I want to ask u are?
1. What MAP should I keep when I create the material for the first time?
2. What the base to calculate the target cost in production order? Currently the target cost is zero for that the varience is hugh which will be going to affect the MAP in a big manner after setllement? What should I do in that case?
Ur valuable inputs are awaited at the earliest. It's urgent.

Kindly go thoroug following it will solve your issue
Genrally SAP suggest Std price for semi & fin
but some company are useing MAP so i think the client want MAP then also it will not create any problem but this is laways FICO decision
now MAP is not getting updated
while goods movement system update G/L AC automatically the price used for updating the GL is either std or MAP depending on which is maintain in material master
your MAP will get updated only after settlement of Production order If your production is make to order in that case costing is against Sales order & no issue of settlemnt of Production order so MAP will not be updated in MTO
which price you should maintan in material master & target cost & variance
initally u upload master data with price 1 After that u take costestimate run & realse the price that will be std price Now you can see the varinace along
after realsing the cost estimate you can chane MAP in mr21/22
You can maintain both the prices in material master but while GL AC updating system check the price control & then pick price
but it is advisable to have STD PRICE

Moving average price in case of semifinished product.

Dear All,
Our client wants to go for moving average price in case of semifinished material, which is supposed to be normally standard price against our advice. The problem is that MAP is not getting updated after the GR against the production order. What settings I need to check in cusomization from PP point of view to solve this problem. Ideally the summation of cost of raw materials has to be the cost of semifinished material.
I did the settlement and the MAP got updated. There are few questions I want to ask u are?
1. What MAP should I keep when I create the semifinished material for the first time?
2. What the base to calculate the target cost in production order? Currently the target cost is zero for that the varience is huge which will be going to affect the MAP in a big manner after setllement? What should I do in that case?
Ur valuable inputs are awaited at the earliest. It's very very urgent.

Hi
There will not any big problem if your client insists upon MAP for the material instead of your suggestio for having S as per std. SAP suggestions. There will not be any change in material price during confirmation if you have V indicator but if you have S as indicator there will be change in price due to costing and settlement. It is not that system will not do anything for the materials having V indicator, check the field value for Standard price , it gets updated. Your costing calculation completely depends uopn the settings that has been customised in OPN2 i.e the settings available for valuation. You cancompletely control all these.
Pirce for your semifinished should include the inputs to it and any other parameters which you would like to add. You can always change the price manually with MR21 if you have Zero stock.
Best Regards

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 and Total Stock not updated for MTO scenario

We are using MTO with planning strategy 20, individual collective indicator is 1 (individual requirement only) and price control is V for finished goods. We are facing the following problems after we perform GR of above FG from MFBF (Repetitive -run schedule header):
1)Total Stock field (LBKUM)in Accounting View 1 remain as blank but the sales order stock is appear in Stock Overview screen.
2)Moving average price does not updated after periodic settlement is carried out.
It seem that problem can only be resolved if we change the planing strategy to MTS (ex:40), appreciate that if any of you can provide the solution.
p/s: on ECC5 system.

Hi,
Good morning and greetings,
The standard SAP says as below
The Raw Materials should have MAP 'V' and the SFG and FG should have the price control as 'S' basically because the standard costing variant PPC1 uses the sequence of Standard Price as the first update at the time of price update and settlement.
I presume MFBF is used for Repetitive Manufacturing and not for MTO scenario...Repetitive Manfuacturing is MTS scenario...Goods receipt of production order is normally done through MB31.
If you still want to use the MAP for FG and SFG then you will have to change the costing variant appropriately to pick the MAP first at the time of goods receipt and settlement.
Please reward points if found useful.
Thanking you
With kindest regards
Ramesh Padmanabhan

Finish and semifinish at moving average price

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