For pricing control 'S' Moving average price is changing automatically.

Dear All,
I have maintained the pricing control 'S' For finished goods. and the standard price also maintained for the same. we are not doing purchase for this material. only production and sales happening for this material.
but for this material MAP is gone upnormally..
it should not update MAP for this material. why MAP is gone upnormally?..
i have checked in the following steps:
1. i have analysed MB51 everything gone correcdtly with correct value.
2. i have downloaded the MR51 material accounting documents its also updated correct value..
why MAP is gone up normally...
Regards
Anand

Hi Anand,
As very well being explained by so many people, when ever you take S as price control, and maintain the standard Unit price, then syatem will keep on updating the MAP(V), but it will be of no relevance, all the transaction will be based on the standard moving price.
whereas when you maintain the MAP(V), then there will be no Standard price,
this is the standard functionality,
as you are saying that MAP is increasing continously, there might have been some mistake in any transections, like GR with wrong price, please check that also, it will also result in increased MAP, whereas standard price will not chage.
hope it helps,
YK

Similar Messages

System posts to PRD account for moving average price material.

Hi,
We are procuring spare parts (ERSA) externally, which is having price control as MAP. While doing GR, system shows message "Account 602042 required an assignment to a CO object." Here the problem is account 602042 is a price difference (PRD) account. Why should system ask for a G/L, which is mentioned in PRD in this case.
Please note that this is first movement for the material and stock is zero in plant. There are no material documents for this material.
Please suggest.
Regards
Alex

If ML is active, then this can happen. Please see note 532932 FAQ: Valuation logic with active material ledger.
material is valuated by the inventory management similarly to the posting logic of a material managed by a standard price. The accounting document generated by the inventory management shows this posting logic; the amount posted in the material document corresponds to the product from quantity and moving average price and not to the externally assigned value.
Generated accounting lines of the material ledger (depending on the material ledger settlement control) then valuate the stock.
Example:
Material: Testmat 1
Price control: V
Moving average price: 10 EUR/PC
Purchase Order: 10 PCS for 150 EUR
> goods receipt for the purchase order for 10 PCS
Acctg documents:
1) GR document:
   BSX 100 EUR D
   WRX 150 EUR C
   PRD 50 EUR D
2) ML document:
   BSX 50 EUR D
   PRY 50 EUR C

'Moving average price for material is negative' calculation

Hi Gurus,
I would like to ask for your assistance regarding Invoice having error of 'moving average price for material is negative'.
How is it being calculated that it goes to negative value? Can you also please give a scenario on why it became negative?
We have the following scenario:
MAP: 0.30
Total Stock: 9
Total Value: 2.74
PO raised and GR was done:
Quantity: 240
Value: 2.95
Would appreciate your assistance on issue.
Thank you.
Jih

Hi,
Please check that price of that material is increased or decreased by using transction MR21. after GRN.
You posted a valuated goods receipt for a purchasing document for a material with moving average price control.When the invoice was posted (invoice item with price variance for goods receipt), the system generates error message M8783: 'Moving average price for material & & & is negative'.
Between the posting of the original goods receipt and the entry of the invoice, the system already posted additional valuation-relevant transactions/events (goods movements, invoices and so on, can be displayed with Transaction MR51).
The invoice verification tries (for stock coverage) to credit/subsequently debit the difference between the value of goods received and invoice item value for the stock.However, the material total value must not become negative by this stock posting.
Solution
Before you post the invoice, you must first increase the stock value.
The amount by which the stock value must be increased at least can be calculated from the following values:
1. Transaction MM03, accounting view material master, field 'Total value' (MBEW-SALK3)
2. Invoice item value according to invoice
3. In the invoice verification (Transaction MR01, MR1M, MIRO), change the invoice item amount to a value which is high enough and simulate the invoice to receive the value which would be posted for this item to the GR/IR account.
In the invoice verification, the value (3) minus (2) is posted to stock. It must be larger than (1).Post a subsequent debit with the amount (3) + (1) - (2) for the affected material/plant (Transaction MR22).
You can post the invoice afterwards.
Regards.
Edited by: Sachin on Sep 24, 2009 9:11 AM
Edited by: Sachin on Sep 24, 2009 9:13 AM

-ve price change in Moving average Price of Material in Material Master.

Dear All,
Kindly guide on below issue.
We have a Material e.g A which stock was available in System let us say 10 qty & the Price per unit was Rs.10. But in last August some users chagned the price to Rs.5 because of whcih the Valuation in previous period has become negative.
Now I have to rectify this. Now please tell me how can I do so.
Also Note: there are sevral other Movements have happened since then i.e. GR, IR, Consumption for Production etc.
This is very important.
Regards,

For negative MAP , there are steps which are given in SAP note 356757. Follow this steps to overcome this issue.
The notes goes as...
Summary
Symptom
When you try to post an invoice for the purchase order, the system generates error message M8783: 'Moving average price for material & & & is negative'.
Additional key words
MRHR, MR1M, MIRO, MMVAL, M8783
Cause and prerequisites
You posted a valuated goods receipt for a purchasing document for a material with moving average price control.When the invoice was posted (invoice item with price variance for goods receipt), the system generates error message M8783: 'Moving average price for material & & & is negative'.
Between the posting of the original goods receipt and the entry of the invoice, the system already posted additional valuation-relevant transactions/events (goods movements, invoices and so on, can be displayed with Transaction MR51).
The invoice verification tries (for stock coverage) to credit/subsequently debit the difference between the value of goods received and invoice item value for the stock.However, the material total value must not become negative by this stock posting.
Solution
Before you post the invoice, you must first increase the stock value.
The amount by which the stock value must be increased at least can be calculated from the following values:
1. Transaction MM03, accounting view material master, field 'Total value' (MBEW-SALK3)
2. Invoice item value according to invoice
3. In the invoice verification (Transaction MR01, MR1M, MIRO), change the invoice item amount to a value which is high enough and simulate the invoice to receive the value which would be posted for this item to the GR/IR account.
In the invoice verification, the value (3) minus (2) is posted to stock. It must be larger than (1).Post a subsequent debit with the amount (3) + (1) - (2) for the affected material/plant (Transaction MR22).
You can post the invoice afterwards.

Costing material having moving average price

HI
My client is having business where prices fluctuates a lot and he wants to use moving average price for all materials including semi-finished and finished material.
My question is in this senario how to do configuration of product costing and how will i be able to calculate cost as far as product costing is concerned. client doesnt want to use material ledger.
Regards
Invin

Hi,
You can not carry out period product costing activity if the material has moving average price control.
If you set moving average price control to material master, the following activities control the moving average price
1. GR (if the value is different from PO price) Entry in MIGO
2. IR (if the value is different from PO price) Entry in MIRO (invoice posting)
3. Price change using (MR21 Tcode)
4. Debit/Credit Material (MR22 Tcode)
Prerequisited for Product costing with quantity structure
1. Material ledger should be active
2. Product should be allowed for cost estimate (setting in Material Master)
3. The master should have Standard price Control in the material master.
If you want to change the price of the semifinished product with moving average price (due to price fluctuation) use MR21 or MR22. But this activity involves lot of human effort.

Standard Price & Moving average Price

please give some detailed info about:
1. where we use the price control " Standard Price".
2. where we use the price control " Moving average Price".
regards
Piyush

Hye
Goods Receipts/Invoice Receipts for Purchase Order
Transaction OMW1 allows you to set whether the Price Control is a mandatory "S" or "V".
V indicate that you want the system to value the stocks with the latest price.
S indicate that you want the system to value the stocks with a fixed price method.
Price Control V - Moving Average Price
Assume Material Master current price is 10
Goods Receipts for Purchase Order - Movement Type 101
u2022     Material Document Posting created - inventory increases
u2022     Accounting Document Posting created
o     Debit      12345   Inventory      12
o     Credit     67890   GR/IR          12
o     New Moving Average Price = ( GR value + Total value ) / ( GR quantity + Total stock )
Invoice Recipts for Purchase Order - MR01
u2022     Accounting Document Posting created
o     Debit      67890    GR/IR          12
o     Debit      12345    Inventory     3
o     Credit     45678   Vendor        15
o     New Moving Average Price = ( Inventory difference of 2 + Total value ) / ( Total Stock)
Price Control S - Standard Price
Material and Accounting Document is the same.
The one with the lower value will be posted with a price variance entry.
Goods Receipts for Purchase Order - Movement Type 101
u2022     Material Document Posting created - inventory increases
u2022     Accounting Document Posting created
o     Debit      12345   Inventory           10
o     Debit      23456   Price Variance   2
o     Credit     67890   GR/IR               12
o     No change in Standard Price
Invoice Recipts for Purchase Order - MR01
u2022     Accounting Document Posting created
o     Debit      67890    GR/IR                 12
o     Debit      23456   Price Variance     3
o     Credit     45678   Vendor                15
o     No change in Standard Price
General Ledger Account Configuration
Transaction OMWB - Automatic posting for inventory
Inventory posting                                     BSX
Goods receipt/inv.receipt clearing acct     WRX
Cost (price) differences                            PRD
Transaction XK03 - Account Payable Vendor Master
Tick Accounting info. and hit the Enter key
Field name    Reconcil.acct     45678
thx

Moving average price not calculated properly

Hi,
For a consumable material moving average price(MAP) is getting calculated wrongly.
There are 2 goods receipts taken in Jan'08 and Feb'08 at a unit price of 1250 and 1450 INR.
Then there are around 10 Goods issues for a cost centre, Mvt type 201 taken for next few months.
The MAP value has been calculated properly after the Goods issues.
Again there was a goods recipt in Oct'08 for 1275 INR.
The goods issue done in Nov'08 has created a problem and it has calculated wronlgy i.e. instead of Rs. 800, the system has calculated issue price as Rs.3500.
No value has been changed in MR21. No PO's has been created between these days.
Can anyone help us...??
Regards,
Ramya

Hi Ramya,
You have informed in your thread that "for a consumable material..", If a material is procured for direct consumption, the consumption accounts in Financial Accounting are posted when the goods receipt is entered . The total quantity and value of existing stocks of the material are not affected. There is no Goods Issue.
Now, if you procure the material for stock, then changes in Material Valuation due to goods receipts and invoice receipts are carried out automatically (ofcourse manually also) when the relevant transaction is posted.
The extent to which the stock value changes depends on the sequence in which the goods receipts and invoice receipts are posted. The SAP System allows for both possibilities:
- When goods are received before the invoice, the stipulations in the purchase order are used as the basis for posting.
- When the invoice is received before the goods, the details on the invoice are used as the basis for posting.
So, please look into the Invoices and the relevant GR/IR clearing account details. You may get a clue there.
Regards,
Narayana.

FIFO with moving average price

we are using for own produced goods "moving average price" and Material ledger. At month end we setlle production variance . The system also creates an entry for ML "price variance" (which is the percentage of the prodcution variance for the remained stock).
When we run the document extract (MRF3), with the option of "Order settlement", the costs include not only the production variance but also the ML line. That is too high.
When we run it without selecting "Order settlement" the adjustement is the reversal of the price variance (the ML line item). That is too low.
The total costs should be only the total production costs.
One cannot exlude it by the material movement as both "price variance" and "production variance" is not part of a material movement.
Edited by: Hendrik585 on May 27, 2011 2:16 PM
Edited by: Hendrik585 on Jun 5, 2011 11:36 PM

hi,
We need to follow the steps if we need to valuate our inventory by means of FIFO Scenario :
1. In T-code OMWE, activate the balance sheet valuation as LIFO Valuation not active & FIFO Valuation active.
2. In T-code MRLH, FIFO Maintained at company code or plant level.
3. In T-code OMWL, set mean receipt price at valuation ares level if Plant or at company code level if at company code level.
4. Configure FIFO Valuation ares for teh respective year.
5. In T-code OMWP, Configure FIFO Method.
6. In T-code OMW4, Movemnet type settings for FIFO maintained. Generally, no chnages made.
7. Select material for FIFO in Tcode MRF4.
8. Execute FIFO Valuation- Tcode MRF1.
Hope it helps..
Regards
Priyanka.P

PROBLEM WITH MOVING AVERAGE PRICE

Hi,
Correct me if Im wrong, but from what I know the moving average price should only change or be recalculated when purchases or goods_recipts are made, otherwise items should be consumed at a FIXED moving average price (cost).
I´ve noticed when looking into the Inventory Audit Report that the moving average price is changing in my installations and I see that SAP BO recalculates it every time an issue is made. This last thing only happens when the total amount of the transaction is rounded or left with 0 decimals and the other types such as prices, rates, quantities, percent, etc. are left with 2 or 3 decimals.
Because of my country settings, the total amount has to have 0 decimals (I live in Chile and we dont have cents in our currency) and the moving average price of an Item should not change when an issue is made, can you help me with this?
Thanks and best regards to you all.
Fernando

Hi Nagesh,
Thank you for your quick response.
I understand what you say, but moving average price should not change when an issue is made and that´s what is bothering us.
The difference between what it shoud be and what SAP BO is calculating is our concern, ie: let´s say the number of transactions is 100, would that difference be negligible?
Here is an example:
Goods issue:
SO 8     11     -10,49     166,67     -1.748     99,35     16.559
SO 9     11     -10,49     166,673     -1.748     88,86     14.811
SO 10     11     -10,49     166,678     -1.748     78,37     13.063
SO 11     11     -10,48     166,684     -1.747     67,89     11.316
SO 12     11     -10,56     166,681     -1.760     57,33     9.556
Note that coma (,) is decimal separation and period (.) is the mile separator.
Where the 3rd line is the quantity of the goods issue, the 4th is the moving average, and the 5th is the total quantity of the issue.
So you see 10,49 x 1748 = 1748,39977= 1748(SAP) and then SAP BO recalculates the AVG. Price.
The problem I was talking about was the difference of the stock AVG Price with one hundred transactions or so... now the difference seems negligible (166,7 - 166,681 = 0,011).
Can you see it changes?, is that a bug?
Thank you
Fernando

Updating the material moving average price in return to vendor process

Hello,
Our finance department is saying that the affect on the moving average price in our return to vendor process is wrong.
At the moment the moving average price is changed according to the material price in the return PO.
Our financial department says that the moving average price shouldn't be affected at all by a return to vendor.
Can someone tell me how to customize the system according to this request?
Thanks,
Sivan

Dear Friend,
In COOIS Report or MB51 report, Select the list as Documented goods movement and in production order field give the production order number and execute. After executing, if any goods receipt has been done for the same than system will show the same with these it will also show the value of the same. If its not showing than go to change layout and select the same.
Thanks and Regards,
Jitendra Chauhan

Moving Average Price Tolerance Report

Is there any standard SAP report that can display moving average price variances? I want to be able to see the percent change in the moving average price after each time that it changes.
The report S_P00_07000139 displays the old moving average price and the new one, but there is no field for variance. I know that OMR6 sets the tolerance keys to company codes, but is there any record of the VP key tolerance violations?
The goal is to be able to see all of the materials that have a moving average price that changed by more than 10% from its last price.
Thanks

Hello, Uuklyph,
if you are not satisfied with S_P00_07000139l, the easiest way would be to create a query (tx SQ01/02/03) over table MSEG "Document Segment: Material", with custom formula for MAP change, calculating with field LBKUM "Total valuated stock before the posting" and SALK3 "Value of total valuated stock before the posting".
Kind Regards
TomT

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 effect due to 309 mvt type

Dear Experts,
when we do stock transfer (309 mvt type ) from mat A to mat B , moving average price of A gets copied to moving average price of B if the stock of material B is zero.
If there is stock for material B, moving average price of A gets added to the stock value of B & MAP is recalculated.
Is there a way to ensure when we do material stock transfer, same MAP price is also captured. please suggest.

>
Mathew John wrote:
> After transferring the material from A to B, then moving average price will change for both the materials.
>
> So if you want to change the MAP, use the t-code MR21 and make the changes. Difference amount will be debited and credited in PRD account.
for what reason should the price of the issuing material change?
can you proof what you wrote?

Calcualtion of Moving average price

Hi All,
I like to know the Calcualtion of Moving average price in Materail master Record. Is there any T. Code to Check Moving avrage Price. Based on which Moving average price is updated automaticly in SAP.
Thanks in Advance,
Mahesh

Hi,
MAP = Moving Average Price
Just follow the Eg:
When u create a material master , u mention the price contol V for MAP, and u also need to mention some Price of this material let us say Rs.10.
So initially
Stock =0 and MAP = Rs.10
Now u create a PO say for Qty 100 and Price Rs.15
when u make a GR for 100 , the account postings will be as fallows
BSX = 150
WRX = 150
when u chek u material master
the MAP = (initial stock Rs.10 + 10015)/Total Stock ( 100+0)
= (0+1500)/100
= Rs.15
Thus MAP= Rs.15... and this follows on.........
For further examples and explanation just go through MAP Caluclation in Library
award if u find it useful
Regards,
santosh

Dump Error due to high moving average price

Hi,
When processing transaction KO88 settlement reversal, gives a dump error - Overflow when converting from "1.13405e+09".In my opinion this error came because the stock value was very high that the caluclated price could not be stored on the database.
Moving average price was reduced but of no much use. Price unit can be reduced but what could be it's implications.

>
Mathew John wrote:
> After transferring the material from A to B, then moving average price will change for both the materials.
>
> So if you want to change the MAP, use the t-code MR21 and make the changes. Difference amount will be debited and credited in PRD account.
for what reason should the price of the issuing material change?
can you proof what you wrote?

For pricing control 'S' Moving average price is changing automatically.

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