Moving Average Price and Credit Memo In value

Hi gurus,
I would like to know how to impact the AMP of a material when a credit memo in value is entered into the system. In this case, the credit memo is not entered through miro transaction (the credit memo is not connected to a MM flow), but is a FI document.
Thanks beforehands

If Credit memo is not connected to MM document, then I don't think credit memo will have any impact on material MAP. How FI posting will be linked to Material? i.e. there will not link between material, quantity and credit amount.
[Example: MAP and credit memo|http://help.sap.com/saphelp_46c/helpdata/en/fc/85c5371e5db25fe10000009b38f8cf/frameset.htm]
Thanks,

Similar Messages

Moving average price and returns to vendor

Hello gurus,
Ive got a question concerning material valuation and returns to vendor.
E.g. we have got 200 pieces of a material with a moving average price of 2 $ each.
Now, what happens if I return 100 of those to my vendor who pays 2.10$ each for them?
In my view, there are several possibilities:
- Nothing happens, the moving average price is not changed at all, value of the goods is 200$ afterwards.
- New value of the goods is 400$ - (100 * 2.10$) = 190 $. This would mean that the moving average price is 1.90 $.
- Last delivered price was e.g. 2.20$, more than 100 pieces were delivered, so the new value of the goods is 400$ - (100 * 2.20$) = 180$, new moving average price is 1.80$.
So my question is: What is standard in SAP?
Thanks
Jens

This is what my thought is
When you return the material to vendor then system take the same valuation as your MAP
and when you buy new goods then it will count based on the
e.g. existing stock is 100 and value is 1000 means valuation is 10 a peice
in you but another 100 at 1200 then valuation is 2200/200 = 11
When a material is subject to moving average price control, the system calculates values for goods movements in the following way:
check this link
http://help.sap.com/erp2005_ehp_02/helpdata/en/8f/d1de34e4cb2300e10000009b38f83b/frameset.htm

Moving average price and standard price

Dear All,
Its simple question can any one explains me what is the difference between moving average price and standard price and how the posting will happen with these two price controls and what will get updated.

Dear Tiru,
There are two types of price control as below:
a)Moving Average Price (MAP):
-If PO and or Invoice price was differ from material master record, the difference was posting
to stock account. Therefore the valuation price will change.
b) Difference between a PO price or invoice price and the material master are posted to price
difference account(PRD). As a result, the price in material master remain same.
Example:
Material Master Record:
Total Qty: 10, Total Value 20, Price 2
Scenario:
PO: 10pcs at 2.50 EUR/PC
Good receipt 10 pc
Invoice 10 pc at 2.50 eur/pc
a) MAP:
Posting:
Stock Account GR 25 +
GR/IR Clearing GR 25 -, IR 25 +
Vendor Account IR 25 -
New Material Master ,Result:
Total Qty = 20
Total value = 45
Price = 2.25
b) Standard Price:
Posting:
Stock Account GR 20 +
GR/IR Clearing GR 25 -, IR 25 +
Vendor Account IR 25 -
Price difference Account(PRD) GR 5 +
New Material Master ,Result:
Total Qty = 20
Total value = 40
Price = 2.00
Hope this help.
Loke Foong

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

Moving Average Price and Total Stock not updated for MTO scenario

We are using MTO with planning strategy 20, individual collective indicator is 1 (individual requirement only) and price control is V for finished goods. We are facing the following problems after we perform GR of above FG from MFBF (Repetitive -run schedule header):
1)Total Stock field (LBKUM)in Accounting View 1 remain as blank but the sales order stock is appear in Stock Overview screen.
2)Moving average price does not updated after periodic settlement is carried out.
It seem that problem can only be resolved if we change the planing strategy to MTS (ex:40), appreciate that if any of you can provide the solution.
p/s: on ECC5 system.

Hi,
Good morning and greetings,
The standard SAP says as below
The Raw Materials should have MAP 'V' and the SFG and FG should have the price control as 'S' basically because the standard costing variant PPC1 uses the sequence of Standard Price as the first update at the time of price update and settlement.
I presume MFBF is used for Repetitive Manufacturing and not for MTO scenario...Repetitive Manfuacturing is MTS scenario...Goods receipt of production order is normally done through MB31.
If you still want to use the MAP for FG and SFG then you will have to change the costing variant appropriately to pick the MAP first at the time of goods receipt and settlement.
Please reward points if found useful.
Thanking you
With kindest regards
Ramesh Padmanabhan

Moving average price and COPA

Hi
We have direct ship process and the material master is set with Price control V. Our objective is not to do standard cost estimate as it is a trading org. However the values from Sales module at the time of billing is to reach COPA value fields. When we try to release the billing document to accounting, the following error appears:
"In COPA system tried to valuate a line item using current Standard cost estimate. The system looks for material cost estimate using costing key ZDA."
Please note that we have many co codes in the same operating concern and all of them use the same costing key ZDA which is "Current standard cost estimate acc to entry in Material master". All of them want Standard cost estimate to be done except this case. Also the material type is common and is assigned to Costing Key ZDA. I understand because of that it is looking for that. My specific questions are:
How to do specific settings with respect to this plant/co code? (We have not set the Plant assignment to Valuation variant).
What settings are required in Material master?
How does the costing take place when goods are issued to customer and which field it will update in Material master?
What plant/co code settings are possible in COPA to avoid the system looking at ZDA.
Your early reply is appreciated
Thanks & Regards
S Jayaram

Hi,
If you dont want system to read costing key zda then you need to maintain separate mataerial type (which would not be assigned to costing key, in copa configuration).
There are two types of costings that you can perform, whether cost estimate in controlling or sale order costing at the time of sale order. if you want to perform sale order costing (which your current scenario look like) then you need to assign this specific material type to costing key of "sale order level costing".
Regards

Batch Management with Moving Average Price

Hi all,
I got a question here. If we use batch management in SAP with our price control as 'V' (MAP for Moving Average Price), and we do good issue out by batch, will the system credit my stock based on MAP value or the actual value (actual PO price by batch)

Any kind soul can helps me??

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 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

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

Abnormality in Statistical Moving Average Price

Hi All,
I have a material maintained with standard price "S". Statistical Moving Average Price of the material has gone abnormally after 6 months of creation of material. Thisi is causing dump in posting goods movement as the system is calculating moving average price and there is a field over flow so the screen is going to dump while posting goods movement due to some price variance.
I have seen MBEWH and MBEW, there I saw huge variances recorded in statistical MAP of material
Here I know there is one SAP note suggests the solution how to correct this.
But I am concerned with route cause analysis; I have verified the following and found every thing is OK, only there are small price variances which can never cause huge abnormality in statistical moving average price.
I have verified
(a) Changes in Material Master MAP field
(b) MB51 - All goods movements related to that material - No abnormal price variances
(c) ME2M to see in any purchasing documents, if price is given in USD or Euro; but it is not so
Is there any thing I missed, could you please suggest.
Rgds
Raul

this is usually caused by the fact that the PO price was wrong at the time when the GR was posted.
This PO price gets changed later by purchasing guys to allow posting of the invoice without variance.
Hence you have to check PO document change history to find the PO which was adjusted in the price.
MR51 should show you that the GR was posted with a small value. Download MR51 to Excel and calculate the MAP for each line, this will show you which one has an exceptional MAP.
Edited by: Jürgen L. on Sep 30, 2010 7:05 PM

Audit of Moving Average Price

Our auditors are recommending that we identify in a monthly report the differences in a materials moving average prices. I know the information, current and previous moving average price is available in table MBEW, but is there a standard report that can list only the materials where there are differences?

Hi Rick,
Yes we have,But you need to take help of FICO guys.because moving average prices will credit only the price differences account.so you need to know first find G/L account and next take report of that account.
I can say G/L account name and no but it is different from one your system to other system it is deependent on company structure.
Hope this wll helps you
Prem.

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

Moving average price for Standard price estimation

Hi All
We have 3 Costing variants for Legal valuation, Group valuation and Profit center valuation which has a valuation variant with strategy 1. Planned price, 2. Moving Average Price and 3. Standard price. When Planned Price is missing system is supposed to pick up MAP as the standard price. But I am not able to understand, when MBEW holds, old MAP, where from system is picking up the latest Periodic Unit price for calculation of Standard price for PV and GV, whereas for Legal valuation it is picking up the MAP as in the material master or MBEW table.
Please help
Regards,
VB

Thanks a lot praveen for your quick reply,
we have kept MAP and STANDARD PRICE for all materials wheather it is V or S,
and kept costing variants active for both standard as well as moving average price.
Standard value will be picked for planned and actual from MAP.
But what we have done that as i told earlier for all materials we have updated with MAP and Standard price.
so my question was will it get any reverse effect on material valuation.
Waiting for your quick and valuable reply
Rgds
Ana

Moving Average Price and Credit Memo In value

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