Future price vs. average price / material expenses in COPA
Hello,
at the moment we have some trouble with the material input in the COPA for merchandise. Normally the material input for it should be the average price from the material master.
After having analysed some missing costs for material input we have realised that in case there is a future price with a valid date < the billing date the future price is taken and not the average one, e. g.
average price: 10 u20AC
future price: 12 u20AC
valid date: 01/31/2008
billing date: 02/01/2008
results in material input of 12u20AC. In the sap help it is said that the future price is only taken into account if "it is activated for material valuation."
Can somebody tell me what changes I have to make so that the material input is taken from the average price instead of the future price (quasi setting the future price to inactive regardless of value and valid date). Otherwise we have have to change sd conditions etc. which is a lot of work.
Thanks in advance.
hansi
Hi
Here is the information from the pdf file.....
Cost condition - VPRS
Use
In Pricing, you may want to compare the prices with costs or even implement contribution margin
accounting.
To do this, you can use the condition type VPRS as the cost price.
The condition type VPRS goes into the valuation segment in the material master and determines
from this the standard price or average price.
Settings in Customizing
The condition type VPRS is labeled as a statistical condition in the pricing procedure.
Using the condition category G, the condition type VPRS goes into the valuation
segment of the material master and determines from here the standard or average price.
The condition category S always accesses the standard price whereas condition
category T always accesses the average price.
You can refer P 102 in this link....
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/SDBFPR/SDBFPR.pdf
Hope this information is helpful.
Thanks,
Ravi
Similar Messages
-
Report on Standard Prices & Moving Average Prices
Hi,
Would like to have a report on List of Materials with Standard Price & Moving Average Price per plant?
Though we use Standard Price, since material master also gets updated with Moving average Price.
Regards,
VengatHi,
Try MM60 tcode, see if it is suitable to you.
It shows you both (average / standard price)
Best Regards,
Natan -
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
PiyushHye
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 -
Standard Price Move Average Price
Hi guru:
Can anyone tell me the difference between standard price and move average pirce or what's the relationship between them?Does it affect posting for invoice receive/goods receive?Standard vs Moving Average Price
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.
Company generally uses moving average on purchased materials with small cost fluctuations. It is most appropriate when the item is easily obtainable. The impact on margins are minimized which reduces the need for variance analysis. Furthermore, the administrative effort is low as there are no cost estimates to maintain. The cost reflects variances, which are closer to actual costs.
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 back flushing of material and labor, production inefficiencies (higher cost) or efficiencies (lower cost). This is not a standard accounting and costing practice.
Refer to OSS note 81682 - Pr.Contr.V for semi-finished and finished products.
SAP recommends that standard price to be used for FERT and HALB. If actual price is required for valuation, make used of the functions of material ledger where a periodic actual price is created which is more realistic.
e.g. how SAP calculate the moving average price
Goods Receipt for Purchase Order
Balance on hand quantity + Goods Receipts quantity
Balance on hand value + Goods Receipts value
New Moving Average Price = Total Value / Total Quantity
Invoice Receipt for Purchase Order
Invoice price more than Purchase Order price
u2022 additional value add to Balance on hand value then divided by Balance on hand quantity
Invoice price less than Purchase Order price
u2022 difference is deducted from the Balance on hand value (up to 0). The rest of the amount will becomes price variance. This will result in Balance on hand value is zero while there are Balance on hand quantity. If the Balance on hand value is enough to deduct, then the remaining value will be divided by Balance on hand quantity.
When your Goods Issue price is constantly greater than your Goods Receipt price, it will result into zero value moving average price.
OSS note
185961 - Moving Average Price Calculation.
88320 - Strong variances when creating moving average price.
Never allow negative stocks for materials carried at the moving average.
Hope thil will help you.
Cheers,
Parag Mahajan -
Dear SAP B1 Xperts,
My requirement is a report with cols.: Item Code | Item Desc | Price, also it fulfills the conditions like
1. Average Sales Price for the item sold since 01st April 2011.
2. For the item which is sold before 1 year, I want last invoicing price.
I would appreciate if you forward the Query that can be saved and run in SAP's Query Manager.
Version: SAP B1 8.81 PL07
MS SQL 2008
Awaiting Xpert Comments...
Regards,
Papil
Edited by: SAP De' Papil on Oct 3, 2011 11:49 AMHi,
Try this query:
SELECT T0.ItemCode, MAX(T0.Dscription) 'Description', AVG(T0.PRice) 'Average Price',
(SELECT T0.[LstEvlPric] FROM OITM T2 WHERE T2.[ItemCode] = T0.ItemCode) as 'Last Purchased Price'
FROM INV1 T0
INNER JOIN OINV T1 ON T1.DocEntry=T0.DocEntry
WHERE DateDiff(DD,T1.DocDate,'04/01/2011')<= 0
GROUP BY T0.ItemCode
Thanks.
Clint -
Moving Average Price for Sales stock and Project stock of a material
Hiya Gurus,
I am developing a report to display inventory details. My requirement is that I have to display the Moving average price of a material for all Valuation type. I also need to display the Moving average price if a material has got Project stock or Sales stock.
In MBEW table I can get the Valuation type and its Moving average price, but how can I find the moving average price for the same material if it has got Sales stock and project stock. Please let me know the table and field where I could get the relevant data.
Kindly help me on this, it would be deeply appreciated.
Cheers,
ZIaHi
can you look at tables
EBEW Sales Order Stock Valuation
QBEW Project Stock Valuation
Nat -
Moving average Price for Material is Negative
HI Friends,
I am doing MIRO for PO where its giving me error while posting the Invoice that
Moving average price for material is negative
Can any please help me to resolve this.
what would be the implications if the price difference is too high b/w MAP in Invoice .
Thnaks
Purna NalluriIt is ofcourse bcoz there is price difference in the between PO and IR....
so as per the calculations the MAP becomes negative....
The formula for it is :
Difference/Current stock holding + current moving average...
Pls check you price entered at PO and IR....
There are no any implecations...excepts the price differece is reflected in the MAP of MMR....
hope it helps...
Regards
Priyanka.P
Edited by: Priyanka Paltanwale on Sep 23, 2008 7:28 AM -
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 Pillaiyou 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 -
Moving average price has become Zero in Material Master
Hi,
Can you please help us , if you have any ...this kind of situation in your projects.
Scenerio:
We are using Workflow mechanism for creation material in Master data client
01. After creation of Material, it will go for approval (to six departments in SAP Itself ) and after their approvals,it will be moved to "Book of Records"( to Transactional client)
02.If the requester is submit the Material for approvals, it will create IDOC and will be moved to "Book of Records"( to Transactional client).
03.If any error is there in the Material views, IDOC will be failed in Outbond system( Transactional client)
in this case.We use BD10 to move the changes manually.
Problem is,
01.We moved manually 10 materials on 29/10/2008 through BD10 to Transactional client .in this case, we observed that, the moving average price(VERPR) ,Commercial price 2 (BWPH1),and Moving average price (if the price control is S) (SALKV) has become Zero.
Why ?
Why this 3 fields become Zero ?
Is there any link between these fields and How ?
Note: Price control "S" is maintained to the above all the materials.
Can any body help us to find out the reason ?
*What is the solution to find the Moving average price now and to update as on date ?
Is there any field , we can see the Moving average price in backend ?*
Your help will be highly appreciated.Normally when you create a new material, you need to provide the price manually for the first time. Now since you said your price control is "S". Otherwise your IDoc should have a price for the Standard price when it is "S" and Moving Average price when it is "V".
It can be ZERO if you intend to create and release a std cost esatimte (For internally produced materials). -
Moving average price as price control in material master: Erroneous entries
Dear All,
Recently we did a price control change from standard price to moving average price for one of our clients and scenario testing was done. We came across the following issue at the IR point and this error occur time to time ( not for all POs )Following steps were followed
Scenario
1. Create a PO for 1000 Kg of material A @ 1USD
2.GR the purchase order- at this point correct values are passed to stock account
3.consumed 250 Kg from the above material and from the same batch- correct values are passed to the accounts correctly
4.invoice verification is done for the above PO with a price variance of 100 USD. The error occur at this time ( some times )
Correct entry:
Dr GR/IR account 1000
Dr Stock account 75 (Price variance is charged proportionately charge to the balance stock)
Dr price variance 25 (Price variance is charged proportionately on the consumed stock)
Cr Vendor 1100
But sometimes the value does not pass accurately for the same PO. Accounting entries are as follows.
( this is same scenario with new purchase order with different master records )
Dr GR/IR account 1000
Dr Stock account 100 (Total price variance is charged to the stock account and its incorrect this should be only 75 as explain above )
Cr Vendor 1100
This error occurs sometimes even though the vendor master record and purchase orders are sand same as the time of pass correct entries . All these time GR based invoice verification tick has activated in PO as well as vendor master .
Appreciate your advice.
Tks
Sandagomi
Edited by: Sandagomi Ranasinghe on May 9, 2010 9:25 AMThank you for the information. But this is not the system behavior , system proportionately add the price variance to the stock qty which is remaining in the stock also it proportionately charge the price variance to the price variance account which is consumed before the invoice verification.But time to time it passes the incorrect entries.
eg , Create a PO for 100KG @ 1USD
GR 100KG
Consumed 25
IR , here we IR at higher value than the PO price
PO value is USD 100
IR value USD 100 + 12 = 112
Correct IR entry : Vendor CR 112
GR/IR Dr 100
Stock DR 8 ( 75% of the stk is reaming in stk so relevant variance is USD 8 )
Price variance DR 4 ( 25% of the consumed , so relevant variance is USD 4 )
And this is accurate with accounting principles and standards .
Actually system correctly calculate the above entries . but some times it pass the incorrect entry , this is my issue.
In the erroneous entry it does not segregate the price variance , If we consider the same scenario as above at the time of erroneous entry the system pass entries as below:
Vendor CR 112
GR/IR Dr 100
Stock DR 12 ( add 100% which is incorrect )
This is incorrect . -
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
BalaHi 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 -
Moving average price of the material is negative
Hi GUrus,
Can anybody please expklain me why we get the moving average price of the material to be negative. PLz xplain with an example clearly. Thanks in advance
Thanks
AnushaDear,
Please rfer the OSS Note 753286 you will get the reason for it.
The invoice price is constantly less than the goods receipt price.
The invoice verification tries (in stock coverage) to subseqently debit resp. to credit the difference between value of goods received and invoice item value to the stock.
Hope clear to you.
Regards,
R.Brahmankar -
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 DhanurdhariHi
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. -
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 -
SAP allows release of Standard Cost for Material with Moving Average Price
Hi
We set our Raw Material to use Moving Average Price (V) and price determination 2 (single level). And we activated material ledger.
During mass calculation of standard cost (CK40N), If user accidentally forgot to restrict the Raw Material for being included in calculation, the system calculate standard cost anyway, even though I set it as Moving Average Price. And user is able to release it too without any problem.
Why the system does not restrict it? By giving error maybe. Although as for now I can not find the wrong effect from releasing standard cost for MAP material, by your experience, is there any side effect that I should be aware of?
ThanksCK40n is mass release of all materials. The release is not dependent on price indicator of the material in the master. It will calculate standard cost of all the materials.
Releasing standard cost estimate of raw materials does not have any side effect as long your calculation is based on moving average price.
Regards
Divraj
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