Moveing average price nagative when settleing production order through CO88

Hi ,
We are geting nagative moving avg price for material wen settleing the production order through CO88 , What is the SAP recomended solution for this (ECC 5.00) .

hi
check the line item reports why the price is going negative and consult and do the necessary action

Similar Messages

  • Moving average price for semi finished products

    Hi
    Could anyone light on this issue,
    Our client maintain moving average price for the semi finished material, need clarification on below points
    1)  What is the advantages and disadvantages due moving average price,
    2) Which price in the material master after the production order settlement,
    3) Is there any impact of this on WIP calcaultions
    Thanks in advance
    Mohan M

    Hi
    there are no advantages of it, ONLY Dis Advantages!!!
    That will ruin your inventory valuation forever.. Consider the eg below if your price control is V
    1. Your moving price in mat master is 100 USD
    2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
    Upon GR, GR will happen @ 100 and at period end if Qty is lying in stock, 10 variance will also be inventorized
    BUT, now consider this
    1. 1. Your moving price in mat master is 100 USD
    2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
    Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
    3. You Mfr on Jan 10 @ Actual cost = 110 in Prod order and Qty = 1.
    Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
    4. On jan 15, you consume Qty 1 and qty lying in stock is 1
    5. In period end, when you do settlement, following will happen
    a. For prod order 1: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
    Mvg Avg price will shoot upto 110
    b. For prod order 2: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
    Mvg Avg price (MAP) will shoot upto 120
    System wont check whether the qty lying in stock pertains to prod order 1 or 2... It will simply check if the Qty of prod order matches with qty lying in stock. hence, it will keep on inventorizing variance in this case.... and your MAP will touch the sky
    Regards
    Ajay M

  • Moving average price updation when goods receipt posted

    Hi,
    Please let me know in which tables the moving average prices changes get updated when goods receipt is posted. Also let us know the process as to how moving average price gets updated in the accounting1 view in material master.

    Hi,
    Its updating in the table MBEW.
    To see the log of moving averae price updation, use report S_P00_07000139.
    Example :
    Stock quantity : 10No's.
    MAP : 100Rs.
    GR : 10No's@12Rs
    Now MAP will become 11Rs (220/20)
    Regards,
    Prabu

  • Valueation type error when settleing production order

    Hi ,
    We are geting error  following error when settleing the production order  " For material xxxxx valuation type 01 does not exist for plant xxxx "  wat could be the problem . Is it due to any split valueation activation problem .

    Hi
    Check in MM60, the valuation type maintained for material/ plant combination, if it doesnet exists then create the material type with 01 valuation type in plant.
    Also check in OMWC, valuation category and valuation types are correctly assigned to plant.
    Thanks
    Edited by: Praveen Raghavendra on Apr 16, 2009 8:53 AM

  • How to calculate moving average price(MAP) when price variance in IV

    Hi All,
    My current stock for a material is 39 and MAP is 0.8 GBP.
    A purchase order is created for the material for a quantity of 1 at price of 0.8 GBP per unit.
    Invoice is posted for the above PO at price of 1.74 GBP.
    What will be the new MAP for the material now??How to calculate MAP when there is a price variance in Invoice?
    Please suggest ASAP.

    Hi,
    The Procedure for calculating MAP is :-
    Case 1 :- PO at different price
    If in Material Master your MAP is 0.8GBP & closing stock of 30Nos, value is 24GBP
    In PO if the price is 0.9GBP & qty is 10nos, then after Goods Receipt Total Value of the GR i.e. Qty * Price + any other delivery cost will be added to the material stock value.  Qty is also updated.  New Total Value / New Stock Qty will be MAP.
    In this case Qty received 10 & price is 0.9 that means value would be 9GBP.
    Total Value becomes 24GBP (Present Stock) + 9GBP (Goods Receipt) = 33GBP
    Total Qty becomes 30Nos + 10Nos (Goods Receipt) = 40Nos
    MAP becomes = 33GBP / 44Nos = 0.75
    Case 2 : Invoice Posting (MIRO) at different price than PO
    While doing MIRO is we post at different price system will check whether sufficient stock posted in GR is available.  In the above case it is 10Nos,
    If it is there, then the above logic as in case 1 will take place
    If not available, to the extent of stock availability system will post the different value & adjust MAP & remaining is posted to Price Difference Account.
    In your case it would be like this :
    1. MAP 0.8 for 30Nos (Value would be 24GBP)
    2. Invoice Posting 1.74GBP for 1No.  That means value would be 24GBP + 1.74GBP = 25.74GBP
         Qty would be 30+1 = 40
         MAP = 25.74 / 40   = 0.64GBP
    Hope this clarifies your doubt
    regards,
    JP

  • REM wip and moving average price

    Hi,
    I am working in REM scenario. my fert item is having moving average price say Rs 2.Currently zero stock of finished item. I am having a planned orderA quantity 10  from Oct 1st to nov 30th. when i do backflush at nov 30 , i do assembly backflush and post auto GR of 10 quantity. after doing settlement, i got my moving average price as Rs12.
    I have another planned order B for quantity 20, same finished item from oct 15th to dec15th. On nov 30th when i am doing component backflush or activity backflush of second planned order( i am not doing assembly backflush on nov 30 because this order is not yet completed, it will complete on 15th December), system is posting all cost on my existing stock of finished item and increasing the moving average price of finished item from Rs 12 to Rs 17.
    But this is wrong because cost should not exceed for existing stock, cost should be posted for WIP..
    Please tell me how to correct this?
    how to calculate WIP in REM? is it mandatory to go for reporting backflush? i have only one operation in my rate routing i.e labor hours is my only operation  in 0010.
    Regards.

    Hi,
    Thanks for ur help.
    But my doubt is something different!
    If i have a planned order' A'( qty 10)which is completed in Novemeber month and another planned order 'B' ( qty 20) which is still in WIP on November end, and at this stage if I do backflush for planned order A, cost flows properly and finished item is put in stock with some moving average price.But when i book labor hours again for planned order B, it books cost. But this time i do not do assembly backflush because production is not yet finsihed.so stock quantity is still the old one i.e 10 qty.So second cost booking goes to the stock item of 10 qty and increases the moving average price. system dfoesnt understand that second labor hours is booked for second planned order . this is happening because both planned orders are of same finished item.
    please reply.
    please tell me what is the way to do reporting backflush. what settign we need to do? can it solve my issue?? because my target is to book cost in case of second planned order as WIP and do NOT effect the moving average price of existing stock.
    Regards.

  • Moving average price for finished goods produced inhouse

    Hi All
    How does system caliculate moving average price for a finished product which has BOM, Routing when we do goods receipt for the production order...does MAP change for every goods receipt based on the goods isuues or confirmations to the production order.
    Thanks in advance

    Hi,
    The price will not change during the goods receipt, but when you settle the production oder and there is some danger in it.
    Take the contents of that note into account [ Note 81682 - Pr.contr.V for semi-finished and finished products|https://service.sap.com/sap/support/notes/81682]
    best regards, Udo

  • Standarad price and moving average price

    What is the diff between Standarad price and moving average price ???
    Somasundaram

    Price Control V or S in material type
    When is it useful to use the price control V or S in Material Master ? 
    Do I have to follow the SAP standard setting in the material type for the following material types:
    - ROH(Raw materials) -> moving average price
    - HALB(Semifinished products) -> standard price
    - FERT(Finished products) -> standard price
    In which case and why is useful to change these standard setting in material type?
    What is difference between standard price and moving average price? 
    When and how to use it?
    Standard price are used for products that do not fluctuated frequently.  It is usually used for finished 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 your raw materials is that your inventory costs will always reflect the current market cost.
    SAP strongly recommends that you do not select price control V for semi-finished products and finished products, because doing so will very easily cause the calculation of unrealistic valuation prices. SAP recommends: 
    Price control V for raw materials and trading goods; price control S for semi-finished products and products.
    If you nevertheless select price control V, take care in the following situations:
    1. Unrealistic prices occur if materials are produced and also retire during one period (that is, the inventory at the end of the period is smaller than the total of aquisitions from production orders) and if, in addition, several production orders belonging to a material were finished in this period, and the production order settlement calculates variances at the end of the period. Every single production order carries out an inventory coverage check and may therefore cause the moving average price to be changed. However, the individual production orders do not check whether the inventory available at the end of the period has already been debited by another production order. 
    Example: on 20 workdays in the period, 1 piece of material xyz was produced for each day and delivered to the warehouse at a price of USD 1000. At the end of the period there is 1 piece at the warehouse. Since an activity price of a participating cost center was higher than planned , every single production order calculates cost of goods manufactured of USD 1100 during the settlement. Every single one carries out a inventory coverage check and finds out that the variance can be posted completely to the inventory. That is, the ending inventory of one piece is debited with USD 20 x 100 and it consequently receives a price of USD 3000. 
    1. A settlement is carried out although not all costs have yet been posted to the order. This can even result in a price of 0 for the delivered product.
    2. No period check of the costs is carried out on the order, that is, costs from previous periods may be settled.
    3. Settling orders is already possible in the 'Delivery completed' status.
    Solution: Standard price for products together with possible manual price changes.
    If you are required to valuate semi-finished and finished products with actual prices that correspond to the costs of the actual production, SAP recommends you use the function of the material ledger for this. Here, a periodic actual price is created that is calculated on a much more reliable basis than the moving average price. A so-called price limiter quantity is used which makes sure that in the above example price differences are proportionally taken into account (95% of the total price differences) when valuating the 19 pieces withdrawn from material xyz which results in a periodic actual price of 1100 USD. In addition, it is possible as of Release 4.5 to even take into account the variances of the actual prices of the raw materials in the valuation of the semi-finished and finished products that are manufactured from it. 
    If we select std price for any type of material or mav and then make po, it will pick from material master or what?
    The Purchase Info Record have the FIRST priority.  When no po info record is found, the Purchase Order will pick the user LAST enter price.  The PO module do not pick up any price from material master.
    Regards,
    Ashok

  • -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.

  • 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

  • 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

  • Difference between Standard Pricing and Moving Average Price

    Hi,
    Would like to seek some advises on the difference between standard price and Moving average price.
    also, how does it affect the account postings differently?
    Thanks

    Standard Price
    Materials whose price control indicator is set to S are valuated in Financial Accounting (FI) at standard price.
    This is recommended for semifinished products and finished products.
    The moving average price is shown as a statistical value in the material master record.
    The standard price is normally calculated using a standard cost estimate for the material. The standard price can also be calculated in a mixed cost estimate.
    Moving Average Price
    When materials whose price control indicator is set to V are received from in-house manufacturing processes, they are initially valuated with a value you defined (such as the standard price). When you settle, the material stock account is debited with the variances. This results in a new moving average price.
    Valuating semifinished products and finished products with the moving average price is not recommended.
    Regards,
    Indranil

  • 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

  • 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.

  • Automatic MAP ( Moving average Price) in CDHDR - How to capture?

    Hi All,
    I have a requirement in which changes to Moving Average price ( MAP) needs to be send to another legacy system through custom MATMAS IDOC. Now when I make a change to MAP through MR21 or MM02 these changes are written in BDCP table and a change pointers are created and hence i am able to send them through IDOC. But when for a material the MAP changes through GR,GI Oor PO changes in such cases the MAP change being an automatic change it doesn't get captured in CDHDR and CDPOS table and hence no change pointers are created. I know CDDHR and CDPOS captures manual changes and not automatic changes. Could anyone please explain me in details how this problem can be resolved.
    Thanks ,
    Ameesha

    Hello,
    I doubt a GR,GI or PO can change the Moving Average Price.
    It should be only through MR21.
    Please check again.
    Rajeev

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