Finished Goods valuation at Moving average price.

Dear Experts,
My client needs all finished goods are to be valuated at Price Control of V 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

Similar Messages

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

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

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.

Updating the Moving Average Price

We want to adjust the price of a material to account for storage overhead by adding 10% to the price. We have found procedures to modify the price if the price control is standard, but none for moving average prices.
 As I understand it, the moving average price is re-calculated for a material every time stock is received and the new value is stored in table MBEW (VERPR). Weve pretty well determined that we dont want this to change. Rather, it seems best to simply add 10% at goods issue time (and do a split valuation for the account assignment).
 Ive examined transaction MIGO for user exits and found a couple that look promising: EXIT_SAPM07DR_001 (Customer Function Exit: Material Document Item for GR/GI Doc) and EXIT_SAPM07DR_002 (Customer Function Exit: Acct Assgmt for Multiple Acct Assgmt). I didnt find any BADIs.
 Has anybody used these exits for this purpose? Are there other exits or BADIs that would be more appropriate? Does it make sense to change the price this way at all?
Thanks
Rob
Well, I got about the response I expected. I'll close it in a couple of days if no one has any ideas.
Message was edited by: Rob Burbank

Hi Rob!
I found this thread again and started reading a little bit.
I can't follow your problem.
When you have PO and vendor invoice, then we should talk about goods receipt. Then it's quite usual to add additional values (like freight costs, taxes, customs...), which are not part of vendor invoice, but can be part of goods receipt value (depends on statistic flag).
When you have goods issue, then you have internal movement (to a different company code) or sales process. Then you should not increase goods value above moving average price - otherwise goods receipt of 100 PC and goods issue of same 100 PC won't end up with 0 value. Your revenue (for storage costs, handling fees, packing material...) can be added in an invoice for the sold goods - but that's not part of VPRS (stock value).
The question, if you display something in an outgoing invoice is just related to printing - internal documents can be larger.
Also selling based on saved conditions (not based on VPRS + surcharge) is an option -> free defined surcharge, no possibility for outsiders (personal in warehouse) to follow up the mark-up.
But I guess, your thinking about extension of an existing process: you might have already an unusual starting point for process design.
Work-around? Yes, I've heard of customers, where end-of-year balance is 'tuned' in excel before presentation to officials. There are many ways to solve a problem
Regards,
Christian

Moving Average price & Std price

Hai friends,
Any body tell me the difference bet Moving Avg Price & Std Price...
Actually why we are entering the Std or MAP in Material master..
What is the Impact in PO...
Thanks
Ros

Hello Roshan,
Difference bet Moving Avg Price & Std Price...
Material price in Material master is represented by Material price Indicator, The main purpose of material price is to valuated the material stock for financial transaction in company. There are two procedures available in the standard system:
Valuation at standard price : The price is decided by the organization (Costing / Finance / Purchasing / Marketing dept) which is fixed for material, it will not be changed by any inventory or financial transaction, but you can change it with special price change procedure.
This std price is represented with price indicator S
Valuation using a standard price has the following features:
- All inventory postings are carried out at the standard price
- Variances are posted to price difference accounts
- Variances are updated
- Price changes can be monitored
Valuation at moving average price or (if the material ledger has been activated) periodic unit price : This price is not decided by any organization (but in come case it will decide i.e. to upload the initial stock) but it will automatically updated by the Invnetory transactions (i.e. Goods receipt, Invoice receipt) or financial transaction (Debit/credit material). It will keep changes automatically when there is price difference.
This MAP is represented with price indicator V
Valuation using a moving average price results in the following:
- Goods receipts are posted at the goods receipt value.
- The price in the material master is adjusted to the delivered price.
- Price differences occur only in exceptional circumstances.
- Manual price changes are usually unnecessary. However, they are possible.
Actually why we are entering the Std or MAP in Material master..
We are maintaining material price for material stock valuation and inventory transaction valuation.
What is the Impact in PO...
The material price does not have impact on PO, but definately it has impact on inventory transactions i.e. GR, GI, IR debit/credit material.
more info, <a href="http://help.sap.com/saphelp_46c/helpdata/en/47/60ff0749f011d1894c0000e829fbbd/frameset.htm">Price Control</a>
Hope this helps.
Regards
Arif Mansuri

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

Freight accrual - Stock Transport Order - Moving Average Price.

Hi all
   I am trying to add delivery costs (freight accrual) to Stock transport order, where the material in receiving plant is valuated at Moving Average Price (MAP). So, the freight cost is getting rolled over into the material price in the receving plant because of MAP valuation.
    But my client doesnot want that. Instead we want the freight accrual to post to a expense or COGS freight account. Is there way to control this when material is valuated at MAP in receiving plant?
Thanks
Vamsi

Currently, with the outbound delivery for STO and PGI, the following the accouting document is generated.
Cr Inventory Account (sending plant)   10000
Dr Inventory Account (receiving plant) 10200
Cr Freight Clearing Account                       200
Where as I want the accounting document as follows when outbound delivery is created.
Cr Inventory Account (sending plant)   10000
Dr Inventory Account (receiving plant) 10000
Dr COGS Freight Account                          200
Cr Freight Clearing Account                       200
Edited by: VamsiM on Sep 14, 2011 12:17 AM

MIGO - cancel material document - moving average price

Hello,
When using MIGO to cancel a 101 movement, referring to the original material document, the correction on quantities is correct but the correction on value is incorrect.
Material is valuated with moving average price, and the price of the material has evolved in the meantime, which could explain the problem.
Thanks in advance for your suggestions.
Regards,
Sergei

Hello Jürgen,
Thank you for your quick reply. I read the note -- it describes the symptom perfectly, and gives example cases which match our situation. However, no solution or recommendation is given. Does it mean that this way of valuating cancellations is not seen as a malfunction, and cannot be changed?
Thanks in advance.
Regards,
Sergei

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

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 ?

Subcontracting-moving average price update in finished good

Dear all,
We are having make to order scenario in which we are sending raw material or semifinished goods to subcontractor through purchase order .The price control is v in material master ,when processing is done at subcontractors end we are doing goods receipt with movement type 101 it takes price from purchasing info record .When i am analysing sales order it shows material/semifinished costs+processing charges,but in material master of finished product it does not update material master stock and value. kindly provide me solution as to how moving price gets updated in material master of finished product.
Thanks and regards
vijay

hi.
ya I am doing against sales order as we are having make to order scenario,we are sending raw material to subcontractor from our own stock and then my movement type 912 e we are sending to subcontractor ,I am receiving finished goods after processing charges for which migo transaction is done .After seeing sales order cost in tcode kkac i am able to see raw material cost+consumption charge.But as we are having mto scenario it remains as sales order stock and nothing gets updated in material master.My problem is if customer does not takes delivery of my finished product then i have to detach finished goods from that sales order through movement type 411 e and through movement type 412 e attached to another sales order,but since price have not been updated in material master of finished goods it picks up original price which was maintained as re.1 .Kindly provide me solution in above scenario
Thanks and regards
vijay

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

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

Finished Goods valuation at Moving average price.

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