Free article procured needs to be maintained as valuted goods in inventory

Dear All,
Here the scenario is, the company procures the article free of cost from the vendor, but they need to maintain the article in inventory in the same value as they mentioned in the artcle master.
But if i check in T code MB52, after making the free goods receipt of the article, the  value is zero. Pls suggest how to configure so that free goods remains valuated in inventory.
Rgds,
Raghavendra N N

Hi,
For the valuation of the materials delivered free of charge, you must note which price control has been defined in the material master record.
1. MAP :-  If the material is valuated at moving average price, the stock figure is updated on a quantity basis only, not on a value basis. Thus the total stock quantity increases but the total value of the stock remains unchanged. This results in a reduction in the moving average price.
2. STD :-  If the material is valuated at standard price, the stock figure is updated on a quantity and a value basis. The receipt is valuated on the basis of the standard price. The offsetting posting to the stock account posting is made to a revenue account for price differences.
So, Value comes only with Std Price control...but it will go to price Difference Acct.
Regards,
Pardeep Malik

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    Here the scenario is, the company procures the material free of cost from the vendor, but they need to maintain the material in inventory in the same value as they mentioned in the material master.
    But if i check in T code MB52, after making the free goods receipt of the material, the  value is zero. Pls suggest how to configure so that free goods remains valuated in inventory.
    Rgds,
    Raghavendra N N

    Hi,
    For the valuation of the materials delivered free of charge, you must note which price control has been defined in the material master record.
    1. MAP :-  If the material is valuated at moving average price, the stock figure is updated on a quantity basis only, not on a value basis. Thus the total stock quantity increases but the total value of the stock remains unchanged. This results in a reduction in the moving average price.
    2. STD :-  If the material is valuated at standard price, the stock figure is updated on a quantity and a value basis. The receipt is valuated on the basis of the standard price. The offsetting posting to the stock account posting is made to a revenue account for price differences.
    So, Value comes only with Std Price control...but it will go to price Difference Acct.
    Regards,
    Pardeep Malik

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