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

Similar Messages

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    Hi,
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    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,
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    Hi,
    There won't be any difference settings for Price control V
    Only accounting entry will change.
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    Murali. N

  • Finish and semifinish at moving average price

    hello
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    q. 2 ; If we create a cost collect for a product, do u think we need to create process order.
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    OK
    we have created a product cost collector and then created an process order, confirmation made on process order.
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  • Moving average prices and std prices

    hi friends,
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    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.                                                                        
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    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
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  • Standarad price and moving average price

    What is the diff between Standarad price and moving average price ???
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    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. 
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    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 of subcontracted material not picked for Cost estimation

    Hi Experts
    I have the below scenario:
    Finshed Product A has components B, C.
    C is a subcontacted material and it has its own BOM with components D & E.
    We are maintaining moving average price for the subcontracted material C, (because the subcontracter is adding X & Y in addtion to the components D and E, which are sent from us).
    In the mateial maste of C, Procurement type is F and Spl. procurement type 30 are maintained.
    When i do costing for the Finished product A, moving average price of C is not picked up (where as system calculates the std cost for C by adding the values of D & E and purchase info record price).
    Is there any way to Calculate Price of A by using the mvg avg price of C.
    I maintained the below valuation variant settings.
    If i remove the spl. procurement type 30 in the material master of C, it picks up the mvg. avg price. but it affects the MRP planning of  items D & E.
    Please advice.
    Thanks in advance.
    Regards
    Bala

    Hi Big choi
    Thanks for your response.
    I understand.
    1. if we maintain spl. procureent key 30, system calculates standard cost based on raw material and service charges.
    2. If we don't maintain spl. proc key, it considers the material as purchased and picks the mvg avg price from material.
    But, is there any way to pick the moving avg price from material master eventhough i maintained the spl. procurement type 30?
    Thanks
    Bala

  • 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.

  • Moving Average price becomes Zero

    Hi,
    We found several materials Moving price is Zero.  Some materials stock existed, but moving average price is zero.
    How this is happened? If I am trying to create with material MAP filed not allowed for zero price.
    Please assist me.
    Thnaks,
    Sridhar

    Hi,
    check you have any account assignment category in PO?
    is that material is qty update only check material type of that material in OMS2
    check following link also
    [Moving average price of the material is zero even after goods receipt;
    [Moving average price in Material Master;
    Regards
    Kailas Ugale

  • Moving average price for finished goods produced inhouse

    Hi All
    How does system caliculate moving average price for a finished product which has BOM, Routing when we do goods receipt for the production order...does MAP change for every goods receipt based on the goods isuues or confirmations to the production order.
    Thanks in advance

    Hi,
    The price will not change during the goods receipt, but when you settle the production oder and there is some danger in it.
    Take the contents of that note into account [ Note 81682 - Pr.contr.V for semi-finished and finished products|https://service.sap.com/sap/support/notes/81682]
    best regards, Udo

  • Moving average price for finished goods

    Hi All
    I am using moving average price for finished goods.  My question is, Does the price on the material master record adjusts, when we do goods receipt on a production order( If there are variances)?
    here is a scenario:
    Moving avrage price  of finished goods=2$ and total stock =1
    it has two components in the Bom
    Raw1-3$
    Raw2-3$
    Now when I am producing 1 qy of finished goods with 6 $ of Raw materials, moving average price of fert should  be 6+2/2=4 $. But I noticed the moving average price  in the material master record is not changing.
    My question is, Does the MVP changes with production order goods receipt, If so, what setting should I change to acheive that functionality.
    Thanks
    Steve

    Hi Guys
    Thanks for responding
    I am aware that sap does not recommend MAP for finished goods. But we have a weird requirement. And I am doing a demo on this. My thought on MAP is, It changes for every goods receipt. But when I am doing goods receipt on production order, It is not changing the MAP, Even though there is variance on production order. So, My question is, Did I miss any configuration ?

  • Goods Receipt Amount based on PO price instead of moveing average price

    Is it possible to customise SAP so that the amount in Goods Receipt transactions is calculated based on quantity * PO price instead of quantity * moving average price?
    Thanks.

    Thanks for your reply.
    Standard SAP functionality:
    1. When material ledger is active, the GR amount is based on pre-GR moving average price.
    2. When material ledger is not active, the GR amount is based on PO price.
    We use the material ledger but want the GR transactions to record the amount based on PO price.
    Any suggestions?

  • Goods Receipt at Moving Average price instead of PO price

    We are finding a scenario where in goods receipt is getting booked at Moving average price instead of PO price.
    The material is defined with price control indicator as V like any other material. The issue is identifed for a specific material only.
    Can any one tell the reason for this?
    Regards,
    Som

    Here are responses against your queries
    1. does your PO have an account assignment? - No. This is a Material PO
    2. Was the invoice posed in advance to the goods receipt? - No. In fact invoices are still to be posted. However, there is an advance payment to the vendor. Not sure if this has anything to do?
    Pl. help

  • Change Moveing average price in MIGO Goods Reciept through user exit

    Hi,
    i need to change the moving average price in the MIGO transaction  (Goods Issue) through user exit can any one help me with user exit.

    Hi,
    Check these Enhancemnts...
    Exit Name           Description
    V02V0001            Sales area determination for stock transport order
    V02V0002            User exit for storage location determination
    V02V0003            User exit for gate + matl staging area determination (headr)
    V02V0004            User Exit for Staging Area Determination (Item)
    V50PSTAT            Delivery: Item Status Calculation
    V50Q0001            Delivery Monitor: User Exits for Filling Display Fields
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    V50R0002            Collective processing for delivery creation
    V50R0004            Calculation of Stock for POs for Shipping Due Date List
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    V53C0001            Rough workload calculation in time per item
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    V53W0001            User exits for creating picking waves
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    VMDE0002            Shipping Interface: Message PICKSD (Picking, Outbound)
    VMDE0003            Shipping Interface: Message SDPICK (Picking, Inbound)
    VMDE0004            Shipping Interface: Message SDPACK (Packing, Inbound)
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    DELIVERY_ADDR_SAP    Determine Time-Dependent Delivery Address in Delivery
    DELIVERY_PUBLISH     Returns BAdI Implementation: Automatic GR Posting T 2
    DELIVERY_PUBLISH     Updating of Delivery in Purchase Order
    DELIVERY_PUBLISH     AIP: Delivery Confirmation for Sales Order
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    Raghu

  • Return goods will impact the  Moving average price?

    Hi,
      When stock of a material is low,and we return the goods to our vendor from po(movement type 102), the Moving average price may change very large.for example, stock:11 PC, Moving average price:1;return qty(with po 102):10PC,return price:0.5,then the Moving average price bacome to 6. I went movement type 102 can't impact the Moving average price, is it possible?
      Thanks.

    Hi,
    This is not possible. As the name indicates, it is the Moving Average Price. When you receive goods / return goods, the system will take it into accoutn & change the MAP accordingly.
    Regards,
    Prashant Kolhatkar

  • 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
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    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

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