Price Control for Subcontracting.

Hi All,
Pls let me know what Price control (STD or MAP) should be kept for the materials that are subcontracted by the company?
Pls let me know the reason for your suggestion.
Regards,
Shyamal

Hi,
When you say subcontracting iteself, it being processed by an outside supplier. In this case, you will not be doing any value addition on the materials in the form of activity costs or overheads. I don't think the concept of 'Standard or Moving
average price' makes any sense and it should use only the purchase price or the quotation price whichever would be appropriate.
Good Luck!!! Assign some points if this was useful input to you!!!
Thanks and Regards,
Bhuvaneswari.S

Similar Messages

Price Control for Material Type

Hi
How to configure a default price condition for a particular material type and should greyed off and not allowed manual change.
Regard
MM
Edited by: Csaba Szommer on Nov 4, 2011 8:15 AM

Hi,
1st decide price control for your material type & enter in OMS2 with your material type in Price control field in Valuation segment.
Get field name of price control: MBEW-VPRSV
Get Selection Group for price control in T.code: OMSR: 32
Check Field reference for your material type in T.code: OMS2
Select round box of u201CDisplayu201D for Selection Group 32 by double clicking Field reference & save.
Now create material (MM01) with your material type and you can find Price control defaulted which you enter in OMS2 and it can not changed.
Regards,
Biju K

Price Control for Traded Goods

Hi
Can you please suggest what shld be the price control for the Traded Finished Goods
Which is the better option S or V
Regards
Ash

Hi,
Would always prefer price control V- Moving Average Price, because most of the time for stocks, the stocks are valuated at the real price of procurement.
Standard price can be opted for FERT material, where most of the time the prices are not fluctuating.
Anand

Price control for material

Hi,
i want to configure such that while making the material master it allows me the option either taken as V or S.
Now i face the prob.that it not allow me to change price control coming bydefault from OMS2 setting.
Pl suggest me for that.

Hi,
In OMS2 setting if you set price control mandatory checked then you cannot change price control in material master.
Hope this clarifies your query
Regards,
Raviraj

Shall v maintain price control for material type with plant specific ?

Hai Guru,
In OMS2, we change HALB price control [valuation] as V or S. whether shall v maintain this for plant specific.?
Kindly guide
With Regards
Swetha

Hi
if you do not make the indicator Price control manadatory active then you can have different price indicator for each plant. However thsi indicator is never done plant specific. If you wish to have plant specific then you may have to have a new material type and again you need to control the MM01 creation for that particular plant by means of Authorisation control which is littel involved also but can be done.
Regards

Price control for ML & Batch valution

Hi,
We are implementing ECC 6.0 with IS Mill in an integrated steel plant. They manufacture Hot rolled, Cold rolled and Galvanized flat steel products starting with hot briquette iron. All production is in-house. The product structure is multi level. We have proposed to use multi level variant configuration (from the slab stage onwards) since there are a huge number of variants of the products that a customer may order. Thus a single configurable material number can represent thousands of variants. It is primarily a make-to-order scenario with mass production.. However there is considerable movement of materials across sales order segments and plant stock due to business constraints. A basic requirement of the client is the need to analyze cost on the basis of the characteristics of a variant (e.g. grade-wise, thickness-wise etc.) . They also need to know the actual cost of production for each batch. This value of the batch needs to be carried even if the batch is moved across sales order segments and plant stock.
We are proposing to use Batch valuation (which is recommended as a best practice by SAP in such scenarios) to address these requirements. However the client also needs the rollup of the variances for the previous stages of production to the next stage up to the finished product. The same is only possible with the activation of Material Ledger & Actual Costing.
However we understand that batch valuation requires the material to be valuated at moving average price V whereas for single/multi level price determination Standard price S is a must.
We request your advice whether there is any way to avoid this apparent contradiction between price control requirements of batch valuation and material ledger.
Regards
Ramesh

Hi Ramesh,
I agree with Umut's statement: You can use price control S for the single valaued batches.
Your scenario is very interesting to me. I am working in the Mill Products IBU at SAP and we have currently a project running in order to create more flexibility for logistics in using materials that were configured for another sales orders. In such a scenario material valuation and cost order varainace analyis suffers.
A way out of it is the use of a modified make-to-stock with batch valuation and actual costing. So it appears very similar to your scenario. We will include our scenario in a best practice for flat steel (China) which is currently under development. Would be interesting to compare with your experiences.
Since you write they want to analyze based on characteristics, also my blog in the BPX area on metals and mining industries might be of interest for you:
<a href="/people/udo.werner/blog/2007/04/11/including-product-configuration-into-analytics:///people/udo.werner/blog/2007/04/11/including-product-configuration-into-analytics
I would also invite you to write an own blog on your scenario of costing in a steel scenario and open up the discussion. I also intended to contribute with a similar topic.
best regards,
Udo

Reg price control for semifinished material

Dear all,
What is the price control to be given for semifinished which will be sent to subcontractor sometimes and produced in house when there are no orders.
Thanks in advance
Madhav

Dear Venumadhav,
In my understanding this comes under split valuation. If not then you can use mixed costing for the same.
Because standard price can be used for the products produced inhouse and moving average price for the externally procured items
and the sub-contracted items.
check this link also to explore more.
Re: CK11n with procurement type X
Regards
Mangalraj.S

Price control for MIGO

Dear experts,
I need to know what is the settings required for "When doing GR, price in MIGO should be from the PIR and not from standard price of the material".
Please advice

Hi,
Material - Price control = S and standard price = USD 30
PIR - Has a condition record valid for Feb-2011 and price = USD 25
PO created and price in PO = same as that of PIR = USD 25 (this is fine)
PIR price control = 5 (GR date)
MIGO - completed
In ME23N or MIGO, when I display GR document, it shows the price was picked up from Material master and not from PIR
MIRO- Price = PIR price (no issues here)
All I need is to know whether we can have MIGO alos pick up same price from PIR condition record which is valid for the GR date?
Best Regards,
Shashidhar

Price Control for FG & SFG

Hi All,
Is it mandatory that for Price FG & SFG, one should maintain Price Control as "S" - standard price in the Accounting view of material master?
Regards,
Manish

Hi
It is mandatory to maintain the Price control in Material master accouting view 1 and for In house produced material it should be S standard price as per the definition of standard price
A constant price at which a material is valuated without taking goods movements and invoices into account.
For incoming material or raw material it should be V Moving average
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.
Hope it is clear to you
Regards
Anupam Sharma

Price control for material as per delivery

They are purchasing material which are used in the production process these have a fluctuating price and the price paid is the price at the point of delivery not the point of ordering. The prices are fixed for three months at a time but the delivery lead time is six weeks to two months, this means that at the time of ordering they do not know what the price will be.
This results in a significant volume of manual work to change all the POu2019s as they cannot think how to put the prices into the system. We would like to remove the requirement for the local to have to update the prices constantly and have the prices placed in the system centrally and then called off from locally.
What is the best possible solution for above business process .

See the SAP help:
Date of Price Determination
In the automatic price determination process, the price can be calculated as at the document date of the PO, or as at another date (such as the current dayu2019s date, the delivery date, or the goods receipt date). You can specify the date to which the price that is determined relates at the following points:
In the vendor master record, in the Pricing date control field, if you wish to use the same price determination date for all a vendoru2019s materials.
In the purchasing info record, in the Pricing date category field, if you wish to use a different pricing date for a certain material supplied by a particular vendor.
The value in the purchasing info record takes precedence over the value in the vendor master record.
In the purchase order, in the Pricing date category field (found via Item ® More functions ® Additional data).
The value from the info or vendor master record is preset when a purchase order is created. However, this is only used if you change it in the purchase order and carry out a new price determination process.
The pricing date category in the PO takes precedence.
Example:
In the info record, you have specified that the price determination process is to be carried out with the conditions that are valid on the delivery date (pricing date category 2). Furthermore, you have created two validity periods (from 04. 01.1997 until 04. 31.1997 and from 05. 01.1997 until 12. 31.1997), each with different conditions.
You create a purchase order with the delivery date 05.05.1997. The pricing date category from the info record is adopted. In the course of the price determination process, the info record conditions from the validity period 05. 01.1997 until 12. 31.1997 are then adopted.
If you wish to adopt the info record conditions from the first validity period in the purchase order, you must change the pricing date category in the PO to blank and carry out a new price determination process.

Query for MAP Calculation - Price Control ind V and S

SAP Guru's
Query regarding MAP Calculation Logic
Scenario:
*I have one material xyz
1. It is split valuated material,
2. Two valuation types with diff price control indicators
3. Batch Management is also activated on this material.*
Follwoing is the Material Master Accounting1 View :
Vauation Type     Price Control     Total Value     Qty     MAP                  Batch
     ZA1          V                     610835.00             37     16509.05(V)          01
     ZB1          S                     0                  1     20000.00(S)          02
but when we are running MM03 w/o Valuation Type Accounting 1 View
is showing MAP as 16074.60 i.e. 610835.00/38
Diff. Reports Output------>
MB5L - List of Stock Values: Balances --> Output
ValArea          Total Stock          Total Value
A101               1                          0
A101               37                          610835.00
Net-->               38                  610835.00
MB52 - Display Warehouse Stocks
Check Box - Display Batch Stocks
Condition1: When Display Batch Stocks is selected on main screen of MB52
Mat.     Palnt      Sloc      Unrestricted     Stck in Transit          Total Value
xyz     A101     0010      0                    30                       482238.00
XYZ     A101     0010      7                    0                       115563.00
xyz     A101     0010      1                    0                        0
This is not correct result as Total Values is 597801.00 only
Condition2: When Display Batch Stocks is not selected on main screen of MB52
Mat.     Palnt     Sloc     Unrestricted     Stck in Transit          Total Value
xyz     A101     0010         0                  30                       482238.00
XYZ     A101     0010         8                   0                       128597.00
This is correct result as Total Values is 610835 .00 only
So my query on above issue is :
1. How System is including 1 Qty of Std Price Control for MAP calculation?
As per my understanding MAP is only for Price Control V indicator Materials Stock
2. Whats the difference between these two report output from MM03 Accounting
   view?
Thanks

hi Animesh,
For Split Valuated Material at header level Price control is always "V" i.e. Moving average price reagrdless of the Price control you have given for different valuation types.
Due to this you are getting these kind of results. Please visit the following link for more information
http:///saphelp/EN/8f/d1de34e4cb2300e10000009b38f83b/frameset.htm
Check it and revert back.
Regards,
Jay
Edited by: SAP_MM on Dec 4, 2008 10:19 AM

Account postings in GR & IR for Subcontracting

Hi Experts,
I need to know the account postings for both GR & IR during Sub contracting.
Let us take the scenario . .
PO price - 1000(Gross) + 200(Tax) = 1200 (Net) for 1 Qty
GR - PO Net Price due to Moving Average price.
IR - 1200(Gross) + 240 (Tax) = 1440
Please explain the accounting entries during Goods Receipt and Invoice Receipt.
By
Prabhu

If Material has Price Control as "V" (MAP)
(BSX) Stock A/c of Assembly - Dr
(BSV) Change in Subcon Stock - Cr
(FRL) Subcontracting Charges - Dr
(WRX) GR/IR Clearing A/c - Cr
(BSX) Stock A/c of Components - Cr
(GBB-VBO) Consumption A/c of Components - Dr
If Material has Price Control as "S" (Std. Price)
If Material is having Price Control as "S" then Price Difference A/c will also in picture.
This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt
Price Differences for Subcontract Orders at Goods Receipt
In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).
Example
Finished product: $400 (value at standard price)
Subcontract order:
o Ext. service : $250
o Components : $100
Posting schema without price differences:
Stock account FERT : 400 +
Stock change : 400 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
Posting schema with price differences:
Stock account FERT : 400 +
Stock change : 350 -
Price difference : 50 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
hope it help

Account postings in GR for Subcontracting

Hi Experts,
As I know, for GR of subcontract PO, Price Difference (PRD) A/c will also in picture should depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt'.
I hit an issue for that. We didn't select the indicate for the Price Differences for Subcontract Orders at Goods Receipt but active the material ledger functionality for the plant. The company code currency is SGD and group currency is USD.
Then when do the GR of subcontract PO, there are two finance document created. One is for 101 E which document currency is USD, the other one is 543 O for component consumption which document currency is SGD.
Now the issue is for the 101 E document. Although we didn't select the indicate 'Price Differences for Subcontract Orders at Goods Receipt' , but the PRD is still posted here.
Could you pls tell me how that happens and what is the control?
Appreciate your help!
Thanks
Jimmy

Sorry, forget to show the posting. Below is the detail.
101E posting:
Itm PK Account    Account short text   Tx Trs           Amount     Amount in LC       LC2 amount
1 89 13420000   FG Inventory Mat       BSX          100.00           139.00           100.00
2 96 23900306   AP Accr Clearing        WRX           20.00-           27.80-           20.00-
3 93 35220000   Material Price Var      PRD           22.45-           31.20-           22.45-
4 91 35280000   Mat Qty Variance        BSV           77.55-          107.80-           77.55-
5 86 35280000   Mat Qty Variance        FRL           20.00            27.80            20.00
543O posting:
Itm PK Account    Account short text   Tx Trs           Amount     Amount in LC       LC2 amount
1 99 13100000   PurParts&RawMatInv      BSX           80.00-           80.00-           57.55-
2 81 35280000   Mat Qty Variance        GBB           80.00            80.00            57.55

Price change for a material

Hi Experts,
Need ur help urgently,
i have made a PO taking a material with std. price say 1 rs. but before doing GRN i changed the price to 4 rs. Now, when iam
doing GRN , system post the document taking the old price (1rs.) of the material.
I want that system should calculate the cost with the new price defined for the material ( 4rs.)
In Accounting 1 tab of the material display MM03 :
price control for valuation data for prevoius period is S
and, price control for valuation data for prevoius year is also S
Need ur assistance as I am new to MM
Thanks.
Dhruv

Hi Experts,
Need ur help urgently,
i have made a PO taking a material with std. price say 1 rs. but before doing GRN i changed the price to 4 rs. Now, when iam
doing GRN , system post the document taking the old price (1rs.) of the material.
I want that system should calculate the cost with the new price defined for the material ( 4rs.)
In Accounting 1 tab of the material display MM03 :
price control for valuation data for prevoius period is S
and, price control for valuation data for prevoius year is also S
Need ur assistance as I am new to MM
Hi,
Dhruv,
Whenever you create purchase order price is suggested from info records (if valid conditions are maintained) , if not from your last purchase order. If info record doesnt exists you have enter the prive manually in the item overview of purchase order. The price mechanism whether Moving average or standard is used basically for valuation purposes only. They are never suggested in purchase order.
If you have updated your material master record with standard price and has changed it. Then it should be valuated at new standard price during good receipt
It is always with standard price valuation that good receipt is always valuated at standard price and not purchase order price.
Kindly check your material master record details.
Also which transaction you have used for changing the standard price in material master record.Use MM02 Tcode and change the standard price as you like.
I hope this is useful
Regards,
Tushar Patankar

Change of price control from "s" to "v" in the material master

Dear All,
Due to business requirement, we would like to change the price control for FERT items in the material master from "S-Standard Cost" to "V-Moving Average Price". This change we would like to do only at sales plants (Non-Manufacturing Locations). Very few materilas are having the stock on the date of the price control change
I would like to know is there any SAP Note / Any of you are having such experience? Please arrange the same.
Regards
Anilkumar

Hi,
i am not sure about any program but through MR21 you can change tthe Price in material master.
If stock is available system will hit to closing stock of the material for price change in case stock is not available it will hit price difference gl account.
Regards,
Sankar

Price Control for Subcontracting.

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