Materials Valued at Moving Average Price

Hi,
What is the role of product cost planning in case of materials valued at moving average price.

Hi,
When you don't use materials for production planning you can use in MM the moving average price.
When you are using PP it is better to use standard prices, you make a planning in product costing and from there you update the price in MM. For the sales materials it is a total price from different components used in your PP order and perhaps some stistical components
Later with sales you upload CO-PA with the sales price and can upload the information from PC. In PC you can have a version by month / year.
When you use material ledger you can upload the price differences to CO-PA.
Now you can report from Material ledger and CO-PA the differences between standard pricing and the real costs in combination with sales
Paul

Similar Messages

  • How to view materials with selected moving average price

    Dear Gurus,
    How to view materials with moving average price greater than some selected value?  ie..Is there any report which takes moving average price as input?
    Thanks in advance,
    Sastry

    HI
    While checking any table or report u cannot give conditions (more than this value).
    If it mabe the case, down load the data from table MBEW - Field Name VERPR  to excel file. then u apply conditions, like greater than this value.
    U'll get the desired out put.
    Thanks
    Raman

  • Decimal places values of Moving  average price

    Hi Experts
    Here is scenario:  a material having moving average price (V) when transfer posted with movement type 416 (From project stock to Storage location) is creating an extra FI entry in "Stock in Transit" A/C with a minimal value.
    After a deep search i came to conclusion that how system is creating a difference amount to post in a "Stock in transit account".
    Material X Moving average price = 10
    Total stock at Storage location 123= 1500
    Total Value of stock at Storage location 123 = 15500
    Now upon transfer posting of 100 qt accounting entry will be as follows
    Material  X  100 * 10(V)= 1,000
    Material X 100* 10.333(Calculated as 15,500/1500=10.3333)=1033
    Difference of 33 will b adjusted in "stock in transit" A/c
    Decimal portion value is in stock in transit account. How can i avoid this & why system is not calculating with Price V & why decimals are in consideration?
    Thanx in Advance
    Asif Shahzad.

    check the posting key in movement type because ideally, stock should be 1600 after you transfer 100 pcs,
    MAP should be redetermined.
    please also check if price mechanism in material master is having S.
    because if price mechanism is 'S', system will also have Moving average price, people get confused because of this.

  • Moving Average Price - RM

    Hi,
    For the client, to perform actual costing we have enabled
    ML.
    Price Control :RM - V & SFG/FG - S,
    We have completed the product cost planning, performed GRR .
    For the mentioned above scenerio, request to answer the
    following queries:
    a) How to avoid the updation of standard price for RM?,
    b) While performing GRR,
    Ex : Last Moving average price : 0.55 Paise / KG,
    PO price : 0.90 paise / kg,
    system passes the following FI entries:
    110001     Inventory -RM     6.600,00
    210002     GRIR     10.800,00-
    410061     Price Diff-RM-PRD     4.200,00
    - can any one explain the same how to rectify the same to get  the complete amount in Inventory than in price difference?
    Rgds
    SMK

    Hi,
    Your scenario is like this:
    RM Price Control  - 'V'
    Price Determination  - '2' (Transaction Based Settlement).
    SFG / FG  - Price Control - 'S'
    Price Determination - '3' (Periodic Price Unit).
    for items with price control 'V' and Price Detrmination '2'  the system would create 2 accounitng documents together with the GR.
    1.  The first accounitng document is what you have written.
    2.  The second accounting doucment will settle the price difference posted in the first document to the mateiral.  Thereby ensureing that material is valued with moving average price.
    The price determination is '2' which means Transaction based settlement so the system identifies the difference, posts it and also settle it to the material simeltenaously.
    You can confirm that the valuatioin is correct by checking transaction CKM3.
    Hope this helps you.
    Thanks & Regards,
    Varadharajan

  • 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). We’ve pretty well determined that we don’t 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).
         I’ve 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 didn’t 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 <b>receipt</b>. 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 <b>issue</b>, 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

  • How to enter initial balance for material with moving average price

    We have an issue where the customer wants to split one material into three materials. We are thinking of posting goods issue for the original material and post goods receipt for the new three materials. But how to enter the initial balance since these three materials must have moving average price.

    Hi,
    If you create material first time in system with the help of MM01 then specify the price this will gets affect on moving price.
    and if the material is created with ZERO price then use the option MR21 which is said by  Jürgen
    Reagrds
    Sandesh

  • Materials with moving average price that have goods receipt without PO

    We want to have materials on moving average price, but they are not purchased but are leftovers from production process that can be used again. As such we want to put them in inventory according to internally determined price but to use V price control in order to avoid reavluation of existing inventory when price changes. How this can be done as we don't have PO where to put the price. Maybe is possible to have dummy PO without vendor?

    Hi there,
    so there is never a "regular" GR or invoice? And the material will be put back to stock using movement Type 262, for example?
    There is a way... Consider to activate the "External GA Amount" for the relevant movement type(s). You can do this by customizing the movement type's field selection, category "Materials management". Set this field to "optional". After this you can enter a value in the detail dynpro of the movement. Watch out, it is the value for the posted quantity, not a price... The valution price will be recalculated, the moving everage price will change, but there is no revaluation.
    Does this help?
    Kind regards from Germany,
    Bernd

  • Moving average price in case of goods receipt with free of charge

    Hello everyone,
    Need some inputs......
    Sometimes we receive materials from suppliers free of charge (e.g. warranty replacement) u2013 moving average goes down u2013 worst case 0,01 EUR/piece. This causes problems in government reporting and export documentation EX1 and clearance/pro-forma invoice) for deliveries to field engineers (Order type ZIS1, ZIS3 u2013 item cat. ZICA), because moving average price is used for the values in government reporting and on the invoices. In government reporting and on invoices we need to state a true value of the part.On the other hand, the value warehouse stock is depending on the moving average cost as well.Could you please let me know, how to handle such receipts from the supplier to have a correct stock value and correct values on invoices and government reporting?
    Thanks
    Deepthi...

    Hello Deepthi,
    It depends on your company policy. If you want to valuate the material along with the material purchased handled in moving average price, free consignment will bring down the MAP for the material.
    In that case, you can revaluate the material to the original price in MR21 transaction.
    If you are not going to handle the materials received free of charge along with the purchased material, you can go with another material code, with non valuated material type.
    But i guess, no company will be asking for another material code. So go for revaluation after the receipt of free consignment.
    Regards

  • 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

  • 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.

  • Moving average price in case of semifinished product.

    Dear All,
    Our client wants to go for moving average price in case of semifinished material, which is supposed to be normally standard price against our advice. The problem is that 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.
    I 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 semifinished 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 huge 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 very very urgent.

    Hi
    There will not any big problem if your client insists upon MAP for the material instead of your suggestio for having S as per std. SAP suggestions. There will not be any change in material price during confirmation if you have V indicator but if you have S as indicator there will be change in price due to costing and settlement. It is not that system will not do anything for the materials having V indicator, check the field value for Standard price , it gets updated. Your costing calculation completely depends uopn the settings that has been customised in OPN2 i.e the settings available for valuation. You cancompletely control all these.
    Pirce for your semifinished  should include the inputs to it and any other parameters which you would like to add. You can always change the price manually with MR21 if you have Zero stock.
    Best Regards

  • 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

  • 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.

  • 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

  • Changing of Inventory Valuation:  Standard to Moving Average Price

    I work at a service-based company and have also been asked to research the impact involved with switching our inventory from standard price to moving average price. 
    Scenario:  Change material type TRAD (trading goods) from standard price to MAP.
    Process:  Change settings in SPRO at the level of u201CDefine Attributes of Material Typesu201D.  Currently, this is set for u201CStandard priceu201D with the indicator u201CPrice ctrl mandatoryu201D set.  Upon change to u201CMoving average price/periodic unit priceu201D, Iu2019m thinking I need to de-activate the u201CPrice ctrl mandatoryu201D field so any current materials with an u201CSu201D in the Price control field on the Material Master Accounting 1 tab can be changed to u201CVu201D.  Is this correct?  Also, is there a program that already exists to mass update the Price control field on the Material Master?  If not, I was looking to create a CATT for this changeu2026.any other ideas?  In some of the forum posts it was mentioned to use t-code MR21 however, even with the u201CPrice ctrl mandatoryu201D field de-activated, the Price control column is grayed out.
    It was mentioned in a previous post that all open documents (PO to IR) need to be completed before changing the price control setting, at what point does this stop the process?  Does SAP generate a system error message?
    Also, any suggestions as to when this price switch is best to take place like after inventory?
    Are the above mentioned areas the only areas I should be concerned about or am I missing some areas that should be addressed?
    P.S. We do not use have our ML (material ledger) activated or use split valuation.
    Thanks~
    Dawn

    Hi,
    If you want to change material from standard to moving average price, Follow the below process
    1)first the material quantity and value should be zero
    2)if you want to keep value and quantity and want to change price control in future you have to create new material with price control "V' and lock the previous material for posting.
    Regards,
    Sreekanth

Maybe you are looking for

  • How to use MSN massenger on a MAC?

    well, i installed the microsoft messanger but everytime i open it it says that there is a new version, if i say yes it would then say unable to install and tells me to visit the web site, and when i visit the website i see that the latest version is

  • Download clob contents from function instead of a blob column in a table

    I found some examples how to create a download link for data stored in a blob column. However my data is not stored in a blob column but is created in a function returning a clob. Obviously this function can be used to fill a blob column that can the

  • Excel 2003 problem with group policy

    When I manually install EMET Excel 2003 works. When Emet is installed via Group Policy Excel 2003 fails to open. Excel 2010 works whether EMET is installed locally or with Group Policy. Any ideas?

  • Setting in and out markers for capturing.

    i am learning final cut pro, and have also purchased a new camera. I was under the impression that a tape based camera goes through wear on the heads the more you use it... having said that i just finished chapter eight of capturing video in final cu

  • Installing adobe reader with windows8

    I have installed Windows 8 on my computer and i have spent the last two nights trying to instal adobe reader.  Does anyone know how to do it.