Moving Average Method -- Service Items

Hi All,
Does the moving average method applies for Service Items in any manner.
SV Reddy

Hi,
Valuation method relates to inventory item. If your item is not an inventory item (you could see the tick box inventory item is unticked, it means the valuation method is not applicable.
If your item is an inventory item, service item and your valuation method is moving average then moving average works for that
Rgds,

Similar Messages

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

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

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

Change valuation method from moving average to FIFO

We have incorrectly given valuation method for our raw materials to moving average instead of FIFO. Now, we have a lot of transactions and cannot change the method after a transaction is done for any item. I want to know if this solution will work:
1. create new database with item and business master data, chart of accounts, item groups as before
2. change valuation method of all items
3. Import GRPO, Excise and A/P invoices from old database
Does step 3 create its own JEs?? If it does, then my problem will be solved.

Hi Krishna,
this is the SAP Business One Forum in German. Please post your threads in English to the forum here:
SAP Business One Application
All the best,
kerstin

How I can change Valuation Method from Moving Average to Standar

Hi Experts:
How I can change Valuation Method from Moving Average to Standar for an item that has bookings. We running Sap Business One 2007 A, PL 45...
Thanks very in advance.
Claudia

Hi
You can change the valuation method, but for that you need to have zero physical stock for that item.
Make a Goods issue entry for that Item for all the warehouses, change the method and make goods receipt entry for that item for all the warehouse.
Regards
Kamlesh

Stock Valuation Method - Freeze SAP - Changing from FIFO to Moving Average

When you select and change more that 20 items at one go, from FIFO to Moving Average, it causes SAP to Freeze; Also if you do them one-by-one, after about 30-40 itms, SAP freezes.
Is this knows?

Thanks to all,
But I am running SAP 8.8 PL15; working on the server console, single user, tried several option, restarting Server, SQL, stopped TomCat etc, played with threads etc.
The DB size is 510MB and 1,500 stock items; they have about 7 warehouses, automatically created to each stock item.
I really think it is a problem on 8.8, so I will log a call with AG Support.
Riaan

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

Wrong cost allocated for the Moving Average item

Dear Experts,
Please see this inventory audit report.. Wrong cost allocated for the Moving Average item
[screenshot here|http://www.flickr.com/photos/45736280@N07/4347146537/sizes/o/]
Please help advice why.
Warmest Regards,
Chinho

Oh yes, István is totally correct. I realized I had gotten my definition of Moving Average calculation wrong.
The actual moving average cost price is actually calculated in the background after each purchase. The cost price shown on the screen for each purchase is simply the cost price in the purchase document.
At the point of each purchase, the Moving Average price is updated as:
Actual moving average price = (Last total cumulative value + current purchase trans value) / (Last Cumulative Qty + current purchase qty)
Hope it helps and Thanks guys for the advice!
Regards,
Chinho

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
Bala

Hi 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

FIFO with moving average price

we are using for own produced goods "moving average price" and Material ledger. At month end we setlle production variance . The system also creates an entry for ML "price variance" (which is the percentage of the prodcution variance for the remained stock).
When we run the document extract (MRF3), with the option of "Order settlement", the costs include not only the production variance but also the ML line. That is too high.
When we run it without selecting "Order settlement" the adjustement is the reversal of the price variance (the ML line item). That is too low.
The total costs should be only the total production costs.
One cannot exlude it by the material movement as both "price variance" and "production variance" is not part of a material movement.
Edited by: Hendrik585 on May 27, 2011 2:16 PM
Edited by: Hendrik585 on Jun 5, 2011 11:36 PM

hi,
We need to follow the steps if we need to valuate our inventory by means of FIFO Scenario :
1. In T-code OMWE, activate the balance sheet valuation as LIFO Valuation not active & FIFO Valuation active.
2. In T-code MRLH, FIFO Maintained at company code or plant level.
3. In T-code OMWL, set mean receipt price at valuation ares level if Plant or at company code level if at company code level.
4. Configure FIFO Valuation ares for teh respective year.
5. In T-code OMWP, Configure FIFO Method.
6. In T-code OMW4, Movemnet type settings for FIFO maintained. Generally, no chnages made.
7. Select material for FIFO in Tcode MRF4.
8. Execute FIFO Valuation- Tcode MRF1.
Hope it helps..
Regards
Priyanka.P

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

Standard Cost vs Moving Average

Hi all,
I'm wondering if someone can explain with a bit more detail how SBO handles standard cost.
I know how to set it up and why it's there, but I'm curious how some clients use it and their procedures around managing it.
How do auditors react to it, does it require more work to maintain, is there anything in SBO to help manage the adjustment of variances?
If I switch some finished BOM inventory items to standard cost will there be any long term negative effects such as over/understated revenue?
TIA,
Mike

Hi Mike,
Revenue is not affected by the type of valuation method you choose for the Item, the Gross Profit as reported in the Sales Analysis might be affected if there is a large deviation between the standard and tha actual cost.
Either way, if you have set your accounts correct (= P&L accounts in the right place), in the long run the Gross Profit as it is reported in your income statement (profit and loss) will be correct (the same) with both Standard or Moving Average.
There might be a slight variance between the 2 depending on the cut off point and on the actual variance. You could expect a larger amount of the COGS (= variance being a part of COGS) being posted at the time of the purchase than when dealing with a Moving Average Item.
I hope that was somewhat clear...
Anything unclear, ask again.
Jesper

Moving average in B1

Dear All,
May i know how to calcuate the moving average in B1? can i custom it or it is already set in the system that i cannot change it ?
Many thanks!

Hi,
Moving average valuation method calculates the inventory value by the item's cost price. The item's Cost Price field is found in Inventory --> Item Master Data --> Inventory Data tab page. This field is updated dynamically by every stock receipt posting.
The example provided by Gordon is okay.
To know more here is a general info about several inventory valuation methods:
http://accountinginfo.com/study/inventory/inventory-120.htm
From SAP, there is a pdf file named continuous stock system in release 2004A. It explained about continuous stock system by Moving average, FIFO and standard cost in B1 and so on.you could download it from this link:
https://websmp108.sap-ag.de/smb/sbo/documentation
Rgds,

SBO - Shift from Standard Price to Moving Average Price

Hello,
My customer has created few items with Std Price.
There was not item cost allocated to them and they discovered that the cost of good sold is fully allocated to purchase price variance.
Now, few logistical movements have been done on these items and they want to shift from Std price to Moving average price.
How can we do so since the field "Valuation Method" is no more updatable?
Thanks for your help
Stephane

The Valuation Method is modifiable only if the stock is zero and there is no open delivery or goods receipt transaction (which could modify or need the cost) for the item.

Moving Average Method -- Service Items

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