Moving Average inventory valuation using DI?

Hi, all,
I need to make Moving Average inventory valuation.
Does anyone know how can i do it using DI?
Do you have any solution to solve this problem?
Your suggestions would much be appreciated.
Thank you,
Andy

Hi Andy,
The DI has no object to do valuations. Thus you can not achieve this using the DI.
You can however automate the process using the UI API.
(Automate selections and clicks etc.)

Similar Messages

Moving average price valuation across plants

Hi gurus.
Could anybody help to resolve the problem?
We need to valuate Moving Average Price for Materials across plants.
We use PP module and need to use Plant Valuation Levelu2026
Does any User-Exit exist which is called during valuation?
Thanks & Regards,
Igor

1. Both the consumption & the closing valuation of the raw-materials will be at "V" (moving average price).
2. When the materials are mantained at "V" (moving average price), there is NO price difference varaince. All the price difference flows to the material valuation itself.
Hope this helps you.

Moving Average price valuation

Hi,
We are maintaining rawmaterial at V-Moving Average price in the material master Record, so the consumption will be booked at V price, but what about the closing valuation of rawmaterial, whether it is valued at V price or any other value.
Second Query is how the price difference will be posted, how the system calculates the price difference whether at V price, whether it will post price difference or not.
please provide the info i will assign points.
sd/-
Rajesh

1. Both the consumption & the closing valuation of the raw-materials will be at "V" (moving average price).
2. When the materials are mantained at "V" (moving average price), there is NO price difference varaince. All the price difference flows to the material valuation itself.
Hope this helps you.

Is variance account needed for moving average item valuation?

Hi All,
My client is currently using SAPB1 ver.2005 and upgrade from ver.2004.
After upgrade, in ver.2005, they want to add A/P credit memo that is copied from A/P invoice they have created earlier in ver.2004.
When they tried to do that, system prompt an error message saying "Inventory account is not defined, 'item code' (message 173-77).
So I defined a variance account in G/L account determination, under purchase tab.
G/L Determination -> Purchase Tab -> Expense and Inventory Account.
Therefore, what is the cause of this as they never encounter this in ver.2004. They didn't change anything in the G/L determination as well.
Please help..
Regards,
Kevin

Hi Wilma,
Yes, i have tried both scenarios, the JE i've got are the same with what you have got. But could you explain for scenario 2? Why when you do GRN is MYR 110 and in A/P Credit Memo is MYR 100, But in JE is still
Dr Vendor MYR100
Cr Stock MYR100
Dr Purchase Offset MYR100
Cr Purchase Return MYR100
Shouldn't there be a difference capture of MYR10 to be debited to variance account?
Ok, Can you try this scenario
GRN - A001 MYR110 x 100 units
A/P Credit Memo MYR100 x 1 unit
The JE of the A/P Credit Memo is like the above.
After that, you do another A/P Credit Memo,
A/P Credit Memo MYR100 x 99 units,
My JE
Dr Vendor MYR 9900
Dr Price Difference MYR 1000
Cr Stock MYR 10900
Is this what you get? If yes, could you explain why?
Regards,
Kevin

Moving average prices and std prices

hi friends,
i have a doubt abt prices...
which will b assigned for raw materials-standard price? or avg moving price? and why?
if possible explain clearly about avg.moving price and std.price
for spit valuation what price we will use??
help me out..
thanks in advance...
venkat

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
We recommend that you only use price control V for materials procured
externally. Materials produced in-house should be subject to a
standard price control.
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.
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 backflushing of material and labour, production inefficiencies (higher cost) or efficiencies (lower cost). This is not a standard accounting and costing practice
For Split valuated material it is recommended to use Moving average price

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

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 Costing

My clients business buys used equipment on the secondary market that they refurbish & sell. The prices fluctuate pretty dramatically based upon supply and demand; so it really isn't possible to set a standard cost that would be valid throughout the year. Using standard costs results in huge fluctuations in the inventory purchase price variances month over month and quarter of quarter. Therefore, we explored using moving average costing.
Could someone help me get the moving average to update using PM04, Does SAP actually recommend against using moving average costing?

Charlie,
Thanks for your response. If I understand you right, you are suggesting doing STD pricing every month or quarter instead of attempting MAP? Is that right?
Vishnu

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.

Function module to update Moving Average price for Material?

Hi guys,
is there a function module or BAPI to update the moving average price in a material master?
i have tried UPDATE_MATERIAL_PRICE but guess it does not work. I have also tried MB_UPDATE_MATERIAL_PRICE and it seems to not work. Any pointers?

We have a need to update the moving average price using movement type 531 for a custom solution we have built for other business requirements. We have not found a way to update the moving average price yet using any of the information provided here. Can any offer any other suggestions. Looking for a BAPI, user exit, or function module that we could tap into in order to updat the moving average price. Here is what we found...
We believe that the following suggestions doNOT apply...
BAPI_MATERIAL_SAVEREPLICA is basically for updating material master records in general. It does not address the offset to the alternate accounts.
BAPI_COSTESTIMATE_UPDATE_PRICE does not adjust the moving average price.
CIML_UPDATE_MATERIAL_PRICE updates Project Stock.
Any help would be greatly appreciated.

Error in "Inventory Valuation Method using Moving Average"

Dear Sir,
Here I am using moving average as inventory valuation method at one of my client. I want to know that in SAP Business One, in case of F.G. valuation we can only get the valuation of Raw Material and not the direct expenses cost.
Can you please tell me how should i put the Direct Expense Cost (e.g. Labor Rate) in F.G. inventory Valuation?
Please reply ASAP.
Thanks & Regards
SS

Hi,
Only the raw material cost will be added to the Cost of the FG based on the Quantity and price in the BOM.
Ex:
To make Parent Item FG 1 nos , you required 2 nos of Child Item of Rs 10 each,
Create Bom for the same and refresh the cost of the FG (will find a refresh arrow in the Bottom of the BOM -Screen)
Once you Issue child parts to the respective production order and make a receipt for the Parent Item the cost of the FG will be posted as RS 20
If you want to add the labor cost to the FG there is no direct provision to add the cost in SBO, we have give a work around only as follows.
Create a Service Item ex.Labor Cost and give the Standard cost for that Item in inventory tab For example for Rs 200/Hr
Now add the Service item (Labor Cost) in the Bill of material and in the Quantity field give the Time for the labor required is if the Labor Time taken is 30 min to make 1 FG give 0.5 ie (convert the cycle time to Hours and give the decimal value)
then refresh the BOM,
Now the cost of the FG will be 20+100( labor cost) = 120
The above method can be used only if you have determined a standard time of labor to manufacture,
With regards,
G.Eshvanth Singh

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

Using Moving Average Materials with MF42N (Repetitive Production)

Version: ECC 6.0
I have a "Is this possible" question. I know this isn't a best business practice, but thought I'd anyway. Here goes ...
A material that uses Moving Average (referenced as Material123 below) has the following two materials in its BOM: (1) Moving Average (Material456), and (2) Non-valuated material, material type = LEER (Material789).
The 1st material in the BOM (Material456) is Liquid Oxygen. This product is purchased from a vendor and received into inventory via movement type 101.
The 2nd material in the BOM is an empty cylinder (Material789)
The parent material (Material123) being produced is gaseous Oxygen (Oxygen in gas form).
Basic production process: Liquid Oxygen is the raw material, it is pressurized and stored in a cylinder in gaseous form (for clarity, you've probably seen cylinders before, the two obvious examples of cylinders are propane cylinders used on barbeques and helium cylinders used to blow-up balloons).
Assumptions: (1) We do not want to do a cost roll, (2) We want to report production (TCode=MF42N) to consume the Bulk Oxygen (Material456) and the cylinder (Material789), and create the finished good (Material123), and (3) We do not want to burden the cost of the parent material (Material123) with direct costs, we only want the material costs.
If you read through the assumptions you can see that this is not proper accounting for a production process (i.e. the direct costs in the production process are not capitalized -- labor, power, etc.), if you can get beyond that I was wondering if anyone has ever set anything like this up? I tried to set this up and report production in my test environment, I got the materials created, the BOM created, but when I tried to report production it gave me an error, it needs a production version and/or a cost collector.
If anyone has done anything like this I'd be interested in knowing if it is possible to report production with a setup like this. Thanks.

Using CO production orders may solve your problem. They dont need PP or product costing to be implemented. Costs can be flexibly posted and there are not many demanding requirements for this.
Tcode:KKF1
Link: [http://help.sap.com/saphelp_erp2004/helpdata/EN/82/e72326b11411d29f60080009b0db33/frameset.htm]
Thanks
Naveen

Inventory list with moving average price

Hi all,
How do I get the list of inventory stock using the valuation method as MOVING AVERAGE.
Iam able to get the list using last purchase price, But how do I get it using Moving average Price.
Thanks in advance.

Moving average price for item might be different by each warehouse. Inventory Valuation Report can be used to get the whole picture for any single item by moving average price.
If you want to get more items, you can try this query to see:
SELECT T0.ItemCode, T1.ItemName, T0.WhsCode, T0.OnHand, T0.AvgPrice, (T0.OnHand * T0.AvgPrice) AS 'Amount'
FROM dbo.OITW T0 INNER JOIN dbo.OITM T1 ON T0.ItemCode = T1.ItemCode WHERE T0.OnHand > 0
Thanks,
Gordo

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 inventory valuation using DI?

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