Importance of Moving average price & standard Price in a material

Dear All ,
Can ne one tell me that what are those prerequisite that one material is kept at std. price & other material is kept at moving average price in material master , pl guide .
Rgds ,
sap11

Hi,
Mpving average price:
Qty (new) = Qty (old) + Qty (receipt)
Value (new) = Value (old) + Qty (receipt) * Price (receipt) / Price Unit (receipt)
Price (new) = Value (new) / Qty (new) * Price unit (mtl master)
Also refer to this linke & am sure your queries will be answered:
|http://help.sap.com/saphelp_erp60_sp/helpdata/en/47/60ff4849f011d1894c0000e829fbbd/content.htm]
Standard Price:
When a material is valuated at a standard price, the system calculates the value of goods movements in the following way:
[http://help.sap.com/erp2005_ehp_04/helpdata/EN/47/60ff4849f011d1894c0000e829fbbd/frameset.htm]
Thanks
Utsav...

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Moving average and standard price both maintained

Hi,
I have maintained both moving average price and standard price in material master, price control is V
is there any impact of standard price any where in the system.
Regards,
Ali

Hi,
The system considers only the price maintained in price control V or S.So Which ever price is maintained it will consider only that. As an example if you maintain price control as S and give standard price, So when you do GR against PO with different prices, You can see that system even calculates moving avg price for statistical purpose and same can be seen in material master. For for the transaction purpose only standard price will be considered.
Regards,
Atal

Show both Moving Average and Standard Price of an item in Report Composer

Hello
I do follow all my items at standard price. But i wish to get on the same report both the standard price and the moving average price.
How can i do so :
1 - either by a default report
2 - Or by using report composer
3 - By using a SQL Query
Thanks
Stéphane

Thanks but is there a way to get both data on the same report ?
The solution you gave me allows me only to output two different reports....I don't mind working with a vlookup from time to time but on a daily basis, this is a bit laborious
Thanks for your continuous support
Stéphane

Shifting from Moving average to standard price

Hi all
Presently we are following for all our Inhouse produced materials with Moving average price,we want to change all the materials to Standard price,is it possible to change & if in case if stock is there we will not be able to change,Shall we have to create New material codes with price control S.
whats the best solution
Thanks
Sandeep patil.

Dear,
ML is meterial ledger.
It is used in following cases.
- You have mutliple currencies and to see the stock in differnt currancies.
- You want to see the variances to be carried to different levels of BOM and see the periodic price of the product even though the price control is S.
Hence system will count all the variances and during ML closing steps calculate the variances and send to the higher level of BOM after chaning the periodic price of that raw materil. Hence at higest product level you will come to know exact production cost as well as level by level subassembly cost.
With this cost you can revaluate the material so that the S price will change to this periodic price.

Distribute moving average or standard price via ALE/IDoc

Dear experts,
do you see any way to distribute the moving average price via ALE? It is inside the material master IDoc but it won't update in the receiving system.
We need it for a decentral WM so that people can see the valuation of the material when they do inventory counting (to judge differences in LX22).
Any idea how to unlock the material master for update?
Gunter

Dear Amit,
yes - I understand how the system calculates the MAP. However, the receiving system is a SAP WMS - In WM there is no inventory management nor FI/CO. The valuation would always be zero. So I'm interested how can I update it via ALE?
It works for the first time if I have no valuation (accounting) view in the material and I send an IDoc with the view definition segment and a value for VERPR. But updating isn't possible.
Gunter

Reg:alv for checking the moving average price, standard price andpurchasing

Hi.
How to create ALVReport display for checking the moving average price, standard price and purchasing frequency of purchased materials. And for revise the ordering frequency of materials.
please let me know the logic n program
Thanks

Please try yourself first...If you got any problem you can come back...Don't expect us to do your work.
Greetings,
Blag.

Change costing method from Moving Average to Standard costing

Hi Expert
I need to find out the prerequisites for changing the valuation method of an item from Moving average to Standard costing.
(In the forums i found a note which discusses the change of costing method from FIFO to Moving average.)
It would be greatly appreciated if i can get a reply ASAP
Thank you
Regards
Apsara

Hi Son
Let me rephrase my previous question as i have asked it incorrectly.
Step 1. Make all quantities of the stock zero and also close all Open PO, SO etc
Step 2. change the inventory valuation method
Step 3. Enter new stock prices for the standard cost through stock revaluation. My question is can this be (step 3) done through DTW
Thank you
Kind Regards
Apsara

Moving average and standard cost

Hi All,
I purchase raw material and trading item. assuming that my raw material is based on standard cost and trading item based on moving average.
1) if both item have no more inventory, the difference price between migo and miro will charge to price difference?
2) if raw material which base on standard cost still have inventory, may i know if there is a variance for migo and miro, the difference will go to where? if inventorise then what would happen to the standard cost.
3) if trading item which base on moving average still have inventory, the variance (between migo and miro) will be added to moving average. right?
4) for raw material which base on standard cost, may i know if freight cost, custom duty and some other miscellaneous cost need to add in, how possible it can add to the standard cost?
5) for trading item which base on moving average, may i know if freight cost, custom duty and some other miscellaneous cost also will be added in moving average price?
thanks

Hi,
1) if both item have no more inventory, the difference price between migo and miro will charge to price difference?
Yes, this is correct as per Accounting Standards
2) if raw material which base on standard cost still have inventory, may i know if there is a variance for migo and miro, the difference will go to where? if inventorise then what would happen to the standard cost.
Any difference between the Standard Price in Material Master and Purchase Value (PO Price) will debit or credit the Price Difference A/c no matter whether stock exits or not.
If Material Standard Price = 100 INR
And PO Price is = 120 INR
During MIGO;
Stock Account - Dr - 100 INR
Price Difference A/c - Dr - 20 INR
GR/IR Clearing A/c - Cr - 120 INR
3) if trading item which base on moving average still have inventory, the variance (between migo and miro) will be added to moving average. right?
Yes, it will debit or credit Stock Account and will update MAP of Material accordingly if enough Stock coverage is there.
4) for raw material which base on standard cost, may i know if freight cost, custom duty and some other miscellaneous cost need to add in, how possible it can add to the standard cost?
No, all will get posted to Price Difference Account as following;
If Material Standard Price = 100 INR
And PO Price is = 120 INR and Freight = 10 INR
During MIGO;
Stock Account - Dr - 100 INR
Price Difference A/c - Dr - 20 INR
GR/IR Clearing A/c - Cr - 120 INR
Price Difference A/c - Dr - 10 INR
Freight Clearing A/c - Cr - 10 INR
5) for trading item which base on moving average, may i know if freight cost, custom duty and some other miscellaneous cost also will be added in moving average price?
Yes, it will get added to stock and will update MAP accordingly if enough Stock coverage is there.

Is it possible to change the costing from moving average to standard??

hey all,
i wana know is it possible to change the costing from moving average to standard or vice-versa in the item master??
cheers

Hi Satish
Please look at the documentation from SAP for using this function. I just looked on my drive and can't find the document I used to have for this.
Just setting quantities to zero will not work as all open P/O, S/O, etc must also be closed before you can run the Inventory Valuation Method function. This is all detailed in the document.
I have done this successfully before for a client with over 4000 items, so I have been through the process. Please let me know if you need assistance.
Kind regards
Peter Juby

Moving average price/standard price via iDoc

Hi,
I would like to distribute moving average price and standard price on price change (price changed via transaction event or MR21) to external system.
Is there a way to accomplish iDoc (MATMAS) triggering on price change?
Any idea on how to track changes?
Searching through forums I found that MATMAS will not trigger on MAP change via transactional event, GR, GI...
Thnx

Dear Amit,
yes - I understand how the system calculates the MAP. However, the receiving system is a SAP WMS - In WM there is no inventory management nor FI/CO. The valuation would always be zero. So I'm interested how can I update it via ALE?
It works for the first time if I have no valuation (accounting) view in the material and I send an IDoc with the view definition segment and a value for VERPR. But updating isn't possible.
Gunter

Moving average price & Standard price

Hi every body
For one material some times we use moving avareage price and standard price for that material
Which scenerio we use this & why we have to use this,can any body explain me
Thanks

Hi Tarun
Both, Moving average Price and Standard Price are Price Control Indicators.
It Indicates the price control used to valuate the stock of a material.
Standard Price : It is a constant price at which a material is valuated without taking goods movements and invoices into account. It is normally used for finished Products - Fert ( Vlauation Class - 7920)
Moving Average Price : It is a price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material.
The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.
It is Normally used for Raw Materials -- ROH ( Valuation Class -3000)
Rewards points ,if usefull
Regards
Palaniappan

Change price control indicator from standard price to moving avg price.

Hi All,
There is a material which has a negative stock for the previous period and the previous period is already closed.
When i want to change the price control indicator from S to V for that material in the current period, it shows an error that "negative stock is there, unable to change price indicator".
Kindly help me to solve this issue.
Thanks,
AK

the price control indicator can be changed from standard price to moving avg price at any time .......with some restrictions.
And one of these restriction is the one you see.
You must not have negative stock.
Hence you have to make the negative stock zero
Since your negative stock is in the previous period, you either have to allow posting into previous periods (trx MMRV , of course Finance has to allow this as well) first. Then you can post e.g. a 202 movement with previous period date which has a quantity that equals your negative quantity. then you change your price control, then you do a 201 movement (again with previous period date), finally you can restrict posting into previous periods again in MMRV.
or you just wait a few days, then with the month end closure your curent period becomes previous period and hopefully you will not have negative stocks again. then you can change the price control without any problem (I usually take care that moving average and standard price are equal befor I change the price control)

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.

Does moving average price work with multiple valuations?

Dear All,
I have activated multiple valuations: Legal, group and profit center.
I have activated ML/Actual costing for this multiple valuations too.
Now I have 3 price fields in material master.
Could I use moving average price for some materials types in multiple valuations?
Thank you,
With best regards,
Kamila.

Hi Kamila,
yes, ML is always activated for all materials in a plant. To use MAP you have to set the price determination of a material to '2':
This is the F1 help of the field price determination:
Material Price Determination: Control
Specifies how the material price determination should procede.
You have the following options:
With price control V in activity-based material price determination (indicator2 in the material master), the moving average price is calculated. With price control S, the material is valuated with the standard price and the moving average price is calculated for information purposes.
In single-/multi-level material price determination(indicator 3 in the material master), the valuation price (standard price) remains unchanged and a periodic unit price is calculated for the closed period.
This option is only for materials with price control indicator S,and is only recommended if in addition to multiple currencies and/or valuations, you use single-/multi-level material price determination.
In single-/multi-level material price determination, a periodic unit price is updated for information, but it can only be used for material valuation in the closed period.
Dependencies
The indicator is only of use if the material ledger is active.
Upon activating a valuation area for the Material Ledger in Customizing, you can enter what type of material price determination will be proposed when creating a material in that valuation area. This proposal will be ignored at production startup: the system automatically sets the indicator to 2 in the material master for all materials present.
If you want to change the indicator for a particular material later, choose Accounting -> Controlling -> Actual Costing/Material Ledger -> Environment -> Change Material Price Determination.
best regards,
Udo

Accounting view:Moving avg price and standard price

Dear Friends,
Can anyone explain what for these two fiels are maintained?.....also what difference it makes with the price we maintain thru pricing procedure(considering only PR00)?......can both the prices be at the same value?......Thanks in advance

hi
The system calculates the moving average price automatically by dividing
the material value in the stock account by the total of all storage
location stocks in the plant concerned. It changes the price with each
valuation-relevant movement.
The system changes the periodic unit price if you settle the material
ledger and then save the data.
The valuation of stocks at moving average price or periodic unit price
means that the price of the material is adapted to the continual
fluctuations in the procurement price.
Standard price
     Standard price of the material
Use
     The valuation of material stocks at standard prices means that all goods
     movements are valuated at the same price over an extended period.
Procedure
     Price variances (for example, purchase price higher than standard price)
     upon goods receipt or invoice receipt are posted by the system to price
     difference accounts. This does not affect the standard price.

Importance of Moving average price & standard Price in a material

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