Reg. Price Control V

Hi All,
I have a material which is both Procurred and Produced inhouse. I have Material Master Price control for this material as V (Moving Average).
Now when i raise a production order and do a GR for this material, my stock gets updated by the price indicated by V.
Is there some way by which my GR for production orders is booked with S. so that my V (Price indicator) also gets updated with every GR for Production order.
Please advise.
Thanks in Advance,
Safi

In such scenario, you could use split valuation. Split valuation is MM functionality which allows you to split the same material to have more than 1 valuation class within plant. This means,in your example, you could define different valuation class for this material(for e.g. 7900-for in-house produce,7901-for external procurement). This will also allow you to maintain price control 'S" for in-house & "V" for externally procured & still you have the same material in the plant.
When you would procure this material from external source then ONLY the "moving average price" would be updated & while you produce this in-house then the stock will valuate at "standard price." There is no other way you could update different price for same material with single valuation class & of course the price indicator.

Similar Messages

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 defaulted

Hi All,
I material master accounting view,I am finding the price control v as default...
can you please let me know how to change this
Thanks in advance
kumar

Hi Kumar,
To change this price control default in material master account view 1,
Goto OMS2, change material type
1.Select your material type then choose detail.
2.In Valuation tab, Choose your price control say 'S' or 'V'. Then Save
3.Now go and create material master you will get your required price control..
Any clarrification get back to me..
Reg,
Gopi

Moving average price as price control in material master: Erroneous entries

Dear All,
Recently we did a price control change from standard price to moving average price for one of our clients and scenario testing was done. We came across the following issue at the IR point and this error occur time to time ( not for all POs )Following steps were followed
Scenario
1. Create a PO for 1000 Kg of material A @ 1USD
2.GR the purchase order- at this point correct values are passed to stock account
3.consumed 250 Kg from the above material and from the same batch- correct values are passed to the accounts correctly
4.invoice verification is done for the above PO with a price variance of 100 USD. The error occur at this time ( some times )
Correct entry:
Dr GR/IR account 1000
Dr Stock account 75 (Price variance is charged proportionately charge to the balance stock)
Dr price variance 25 (Price variance is charged proportionately on the consumed stock)
Cr Vendor 1100
But sometimes the value does not pass accurately for the same PO. Accounting entries are as follows.
( this is same scenario with new purchase order with different master records )
Dr GR/IR account 1000
Dr Stock account 100 (Total price variance is charged to the stock account and its incorrect this should be only 75 as explain above )
Cr Vendor 1100
This error occurs sometimes even though the vendor master record and purchase orders are sand same as the time of pass correct entries . All these time GR based invoice verification tick has activated in PO as well as vendor master .
Appreciate your advice.
Tks
Sandagomi
Edited by: Sandagomi Ranasinghe on May 9, 2010 9:25 AM

Thank you for the information. But this is not the system behavior , system proportionately add the price variance to the stock qty which is remaining in the stock also it proportionately charge the price variance to the price variance account which is consumed before the invoice verification.But time to time it passes the incorrect entries.
eg , Create a PO for 100KG @ 1USD
       GR                     100KG
       Consumed           25
      IR , here we IR at higher value than the PO price
     PO value is USD 100
    IR    value    USD 100 + 12 = 112
Correct IR entry : Vendor              CR    112
                             GR/IR                 Dr    100
                             Stock                 DR      8 ( 75% of the stk is reaming in stk so relevant variance is USD 8 )
                             Price variance   DR      4 ( 25% of the consumed , so relevant variance is USD 4 )
And this is accurate with accounting principles and standards .
Actually system correctly calculate the above entries . but some times it pass the incorrect entry , this is my issue.
In the erroneous entry it does not segregate the price variance , If we consider the same scenario as above at the time of erroneous entry the system pass entries as below:
                            Vendor              CR    112
                             GR/IR                 Dr    100
                             Stock                 DR     12 ( add 100% which is incorrect )
This is incorrect .

Moving average price calculation logic of material with Price Control "S"

Dear Gurus,
As you know that there is a Moving price and standard price icon in the material master.
I want to understand the calculation logic of the moving average price of the materials having price control "S"
How the system calculates the MAP for standard price materials? The receipt from the process order I suppose is valuated at the process order cost after settlement, but if the issue has hapened for the material does the system recalculate the issue price also?
Below is the sample process order receipt and issue scenario:
Receipt from process order 161000000223
300 kg and GR at standard cost value is Rs 5892
Issue to process order 162000000294
250 kg and GI at standard cost value is Rs 4910.
Thus the balance at period end is 50 kg and balance at standard cost value is Rs 982.
Here in process order 161000000223 the actual cost is 10 Rs. Then how will the system calculate the MAP?
Thanking You,
Amit Dhanurdhari

Hi
Try the following calculations,
One of them will work depending upon your version and support pack
Expected MAP calculation ( As with price control V)
= ((Qty before transaction*MAP + Transaction Qty * transaction
Price)) / quantity after transaction
New Method ( when price control is S)
= Old MAP + (Price Variance w.r.t Standard Price/Qty after transaction)
Also go through the following notes,
Note 1225167
1253944
518485 FAQ: Valuation of goods movements
212286 Overview note: Valuation during goods movements
209864 Moving average price is disproportionately large
202166 Collective note: Statistical moving average price
185961 Moving Average Price Calculation
I have done extensive research on this, let me know if you need to know something specific.

Actual Cost of Product with Price control "S"

Dear Gurus,
Is there any report available where we can know the Actual Costs of Materials with Price Control "S".
In the material master field the actual cost in the "Moving Price Tab" of the material with Price Control "S" is available, but is there any report available for plant level?
Thanks & Regards,
Amit Dhanurdhari.

Hi Amit,
-- Under Standard Costing, you value your inventory at Standard Costs and any variances in Production Process will be settled to Price Difference Account. You will not be able to find out actual cost per unit. In Multi-level BOM scenario under Standard Costing (CO-PC), variances don't get rolled-up to the next level, only costs get rolled-up.
-- Under Actual Costing - Material Ledger, You will be able to find out the Actual Cost per Unit. Variances get rolled-up to the next level.
To explain difference between Standard Costing in CO-PC and Material Ledger briefly....
You have given Price Indicator as "S" in the material master of "X" material (semi finisher or finished) and you are doing Standard Cost Estimate for arriving at Standard Cost per tonne. Let's say, the Standard Cost per tonne is Rs.1000/-
Now, when you created production order for 10 tonnes and received output of 10 tonnes (GR). But the total cost incurred on that production order is Rs.1100/-. In this situation, actual cost per tonne is Rs.110.
But, because you are following Standard Costing, When you post GR against this Production Order, inventory will be posted at Standard cost only, i.e., Rs.1000/-. and the balance of Rs.100 will be posted to Price Difference Account. (and parallally the variance of Rs.100/-) will flow to COPA.
So, it is clear that, though, at Production Order level you can see the actual cost, at "material" level, you will not be able to see the actual cost per tonne.(as long as you are using only Product Costing and Standard Costing)
Alternatively, if you maintain Price Indicator as "V", you will able to get the Actual Cost per tonne at material level, but there will be no scope for establishing standard cost and comparison with actual thereof.
But, the same is possible if you are using Material Ledger (CO-ML). If Material Ledger is active, you will be maintaining "S" in the material master, still, the variances will be settled inventory and you will be able to get the actual cost per tonne. (bothe Standard cost estimate, actual cost per tonne will be possible).
Pls revert back for further explanation
Srikanth Munnaluri

Change of price control in material master

Hi, SAP experts,
We have business scenario where the procurement type in MRP-2 view of material master gets changed from F to E that is an externally procured item will be manufactured inhouse.
In such case in costing view the price control needs to be changed from V to S. If both MAP & std. price are not identical, system is not allowing to change. Secondly since the item will be manufactured inhouse from now onwards, I have to run the cost estimate & update the master.
How do I deal with the situation.
Valuable advice is awaited.
Regds
T.S.Shankar

Hi Shankar,
When the price control indicator is "V", system will allow changing the Standard price manually through Transaction code MM02.
Similarly when the price control indicator is "M", system will allow changing the Moving average price manually through Transaction code MM02.
Hope this clarifies
Regards,
Som

Price control at the time of GR

Hi
There is a requirement to control the price based on the document date entered at the time of GR.
The document date is nothing but the delivery challan date of the supplier.
The requirement is due to frequent change in prices and retrospective price changes are to be addressed.
Is there any userexit or note which can help achieve the above requirement.
Thanks
Rahul

Hi Merwyn
The example you have provided is the issue why i am unable to use the price control category 5 in the infor record or PO.
Here the requirement is as below:
Price valid from 01.08.2008 to 31.08.2008--- Rs 25
Price valid from 01.09.2008 to 30.09.2008--- Rs 28
The vendor delivery challan is dated 30.08.2008
The material reaches the customer on 02.09.2008
The GR is prepared in the system with
Document date - 30.08.2008
Posting Date -- 02.09.2008
The GR value taken is Rs 28...but this will create problem in IR.
Hence the requirement is to determine the basic price on the document date i.e the delivery challan date of the vendor.
Thanks
Rahul

Free Goods price control

Hi,
Can anybody tell me what is reason for the SAP standard setting for GR of free material
if price control is moving average - only the stock quantity is updated.
if standard price control both stock and value of material is updated.
Regards,
Sachin

In case of std price yr stock will get updated with this price whatever may be the case..
MAP--in this case whatever the current price of posting stock will be added to previous price with this current price..
This is the concept of MAP & STD price..

Settling production variances when the price control of the material is "V

Hi,
Scenario: 1) Materials are maintained at moving average price.
                2) Production variances need to settle to material and MAP need to be adjusted.
Issue: When the closing stock of the material is less than the negative variance need to be settled from the production order   the system is giving the message "Moving average price for material is negative"
Questions: 1) What is the solution for settlement of negative variance to material when there is no stock?
                   2) Is there is any way to settle these variances to price difference account only when the stock is not available. if stock is available the variance has to adjust the stock, if not settle to the price difference account. Is there anys standard settling for this?
Advance thanks for your help
Regards
Koteswararao Padarti

Hi Rao
You should never have Price Control V for In House made material...
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

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

FREIGHT COST TO BE ADDED TO MATERIAL VALUE FOR PRICE CONTROL"S"

hi,
How to add the frieght cost to material cost for the materials with "S" price control While doing MIGO ?
Edited by: ARITRA MUKHERJEE on Mar 3, 2010 5:07 PM

Hi
By stating Price control Indicator S ,it means that you are valuating your inventory at a standard or Fixed price (As maintainred in the Material master ).Hence your Inventory will be valuated at the standard price no matter what additional expenses you incur
Regards
Sandeep

*How to change the Valuation Category & Price control in material master*

Hello SAP Gurus,
I have a requirement to change the valuation category from 'X' to ' ' in accounting view of material master.
-> I have cancelled all the open PO's & SO's for the material
-> I have ensured that there is no stock for the material in that valuation area.
But still I get an error message that batch already exists for the material. When I check entries in MCHB I find that there are previous entires in MCHB with zero stock.
I have gone through the SAP note 155874 which recomends the archiving the effected objects.
Please let me know is there any work around to change the valuation category from 'X' to ' ' & price control 'V' to 'S'. I also need to change from ' ' to 'X' for a few materials.
Thanks for your advise.
Best Regards,
Narayan.

Note 155874 cleary describes what has to be done to be able to change.
There is no workaround, and if you change anything in the tables directly, then this will cause inconsitencies, as described in this note as well.

Price Control Date as GR Date in Purchase Order?

Hello Friends.
We have a requirement where we need to take the price at the time of GR. I have tried to set the Price control date as GR date (5) in Purchase order, Info Record and even in Vendor Master. Unfortunately, it is always taking the price as P.O. price and it is not taking the price which changes between P.O. Release and GR date.
I made several P.O.'s and did GR for the same with less quantity. Then i made changes in the Inforecords and again did GR for the same P.O. It took the price from the P.O. only. Albeit I set the Price determination date as GR Date in P.O., Inforecord and vendor master too. We have requirement of not changing the P.O. once it is created and we dont want to change the price in P.O. once we do one GR for a particular P.O.. We need to re-determine the price at the time of GR without changing the price in P.O. as it require several authorizations.
I need to know if I am missing any setting in P.O., Info-record, Vendor master or any changes required in customizing. Or I need to install any enhancement package for the same.
This is a very critical requirement and hence request MM consultants to provide their valuable inputs.
Regards
Gurcharan

how did you test? did you always create new POs after your changes in master data? Or did you just expect that the existing PO would automatically get to know about such changes?
Was the existing PO price found from the info record? Can you proof that from the analysis in the condition tab?

Can we release the standard price for a material whose Price control is "V"

Hi experts,
Could you please clarify my doubt that can we release the standard cost of a material whose price control is "V".
Our user is trying to release the std price. But its not getting released. If the material is of ML relevant I could have checked in CKM3 for any actual data existancy. I am aware that if any actual data existing the price could not be released.
But here this material belongs to a Non Material ledger relevant plant. So I cheked the stock overview and for any material documents if any. But this material has no stock.
I m confused how to check the material's transactions with FI entries.
Please help in this regard.
Thanks,
Sarat.

HI Sarat
1. You can release a std cost for material with V, but that wont serve any purpose.. The inventory valuation will happen at V alone
Either the material should have a BOM or Routing to release the std cost and MRP view shall have Proc Type as E / X
OR
You can have special proc in costing view as 20 and then execute CK11N for the material....
Some price must be there in material master which will get released as std cost (based on your valuation variant)
2. You can check material transaction using MB51
Regards
Ajay M

Reg. Price Control V

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