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.

Similar Messages

Change price control indicator from standard price to moving avg price.

Hi All,
There is a material which has a negative stock for the previous period and the previous period is already closed.
When i want to change the price control indicator from S to V for that material in the current period, it shows an error that "negative stock is there, unable to change price indicator".
Kindly help me to solve this issue.
Thanks,
AK

the price control indicator can be changed from standard price to moving avg price at any time .......with some restrictions.
And one of these restriction is the one you see.
You must not have negative stock.
Hence you have to make the negative stock zero
Since your negative stock is in the previous period, you either have to allow posting into previous periods (trx MMRV , of course Finance has to allow this as well) first. Then you can post e.g. a 202 movement with previous period date which has a quantity that equals your negative quantity. then you change your price control, then you do a 201 movement (again with previous period date), finally you can restrict posting into previous periods again in MMRV.
or you just wait a few days, then with the month end closure your curent period becomes previous period and hopefully you will not have negative stocks again. then you can change the price control without any problem (I usually take care that moving average and standard price are equal befor I change the price control)

Copy Standard Cost to Moving Average Price

Dear All,
We are maintaining the materials with price control as Standard Price and moving average price is updated and used only for statistical purpose.
I have a requirement of copying the standard price to moving average price field just after the standard costs have been released.
We have used CK40N to complete the calculation and release of standard costs.
Please let me know which SAP standard transaction can be used for the purpose.
Regards,
Manish Gupta

Hi
Whats the need to copy std price to moving price?
I dont think there is any such t code to copy it.. But a weird work around is, if u r on ECC 6.0, you can change the price control from S to V and again V to S.. In this process, your price will get copied from S to V
However, not a recommended way of doing... If you do, you shud do this at a shot and blocking all others users
Regards
Ajay M

Difference between Standard Pricing and Moving Average Price

Hi,
Would like to seek some advises on the difference between standard price and Moving average price.
also, how does it affect the account postings differently?
Thanks

Standard Price
Materials whose price control indicator is set to S are valuated in Financial Accounting (FI) at standard price.
This is recommended for semifinished products and finished products.
The moving average price is shown as a statistical value in the material master record.
The standard price is normally calculated using a standard cost estimate for the material. The standard price can also be calculated in a mixed cost estimate.
Moving Average Price
When materials whose price control indicator is set to V are received from in-house manufacturing processes, they are initially valuated with a value you defined (such as the standard price). When you settle, the material stock account is debited with the variances. This results in a new moving average price.
Valuating semifinished products and finished products with the moving average price is not recommended.
Regards,
Indranil

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

SBO - Update of standard price by batch-input (DTW)

Hello,
Is there a way to update by DTW the standard price related to some items ?
If there is no item cost yet computed, you can use DTW - Items. But if the item cost already exists, what should i do.
Thanks
Stephane

Stephane
To change Standard Price for an Item already having a Standard Price you would need to use Inventory Revaluation.
I am not sure if you can do this through DTW
Suda

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

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 .

Can we change v to s ( standard price)

Hi,
Can we change v price to S (std. price), what precautions and we will be the effect?
Samir

hi
If you want to change the Price control from standard price to moving average price
You can make this change at any time. The moving average price (which until now has been updated for informational purposes only) replaces the standard price and is used for valuation from now on.
If You wanna change the price control from moving average price to standard price
You cannot make this change in the following two cases:
If the material master record is set up as a valuation header record for a material
subject to split valuation .
If the standard price comes from costing and is not equal to the moving average
price
If the change is possible, the moving average price becomes the standard price, which is then used for valuation.You change the type of price control by overwriting the price control indicator in the material master record with the new indicator.Changing the type of price control for a material does not change the value of the material stock,
since in both cases the current price becomes the new price.

Report displaying Material Standard Price and PO Price

Hello Experts
We have materials which are purchased. Price control is maintained as standard price and standard price is maintained using T Code MR21 periodically.
Due to this when PO price is different from standard price maintained in material master (usually PO price is higher than standard price) all price difference are posted to price difference GL at the time of GR.
Now users want to check variations between standard price and PO price for the material receipts.
Can anyone suggest me any report which provides details of standard price and PO price for the material receipts?
Thanks in advance for your help.
Satya Alapati

Nothing std I'm aware of either. You could consider using the messages 06 205/6/7 to get a warning at the time POs are created that price varies significantly from std.
Config help text below:
Set Tolerance Limits for Price Variance
In this step, you define the tolerance limits for price variances.
When processing a purchase order, the system checks whether the effective price of a PO item shows variances compared with the valuation price stored in the material master record. In addition, it checks whether the specified cash discount value is admissible.
Variances are allowed within the framework of tolerance limits. If a variance exceeds a tolerance limit, the system issues a warning or error message.
In the SAP System, the types of variance are represented by the tolerance keys. For each tolerance key, you can define percentage and value-dependent upper and lower limits per company code.
Standard settings
The standard SAP System supplied contains the following tolerance keys:
PE Price variance, Purchasing
Tolerance limit for system message no. 207. This message appears if the specified effective price exceeds the predefined tolerances when compared with the material price.
SE Maximum cash discount deduction, Purchasing
Tolerance limit for system message no. 231. This is a warning message, which appears when the specified cash discount percentage exceeds the predefined tolerances.
Note
You can specify whether the system message appears as a warning or error message using the menu options Environment -> Define Attributes of System Messages.
Activities
Maintain the tolerance limits for each tolerance key per company code.
Regards,
Nick

Moving Averages in Labview SignalExpress

Hi everyone,
I am measuring power consumption values from a PC system at 25k samples/sec and looking for a way to calculate the 1-sec and 5-sec moving averages via Labview SignalExpress (Unfortunately I don't have Labview to custom-implement this). One person suggested using FIR low pass filter instead, but I am not quite sure what values I need to set for "number of taps" and "cutoff frequency" values to have it act like a 1-second and 5-second moving average. Any suggestions here?
Also, does anyone have a .VI from Labview for a moving average functionality, which I can use in my Labview SignalExpress setup?
Thanks,
--Serhan

Serhan,
If you are just aiming to smooth out your signal and reduce noise, than an FIR filter would work fine, but it sounds like you are trying to achieve an exact moving average. Unfortunately, there are entire textbooks on filter design and getting the filter to accomplish that with great accuracy would be a feat. It is true that the moving average is a form of the FIR filter.
I had some old code that took the running average of 100 samples in SE, but I'll have to look for it when I get to work tomorrow. I'll post again when Ifind it.
I don't have any moving average VI's handy, but that would probably be the easiest way to accomplish this. Maybe someone can distribute their VI to Serhan?
Rob K
Measurements Mechanical Engineer (C-Series, USB X-Series)
National Instruments
CompactRIO Developers Guide
CompactRIO Out of the Box Video

Shifting from Moving average to standard price

Hi all
Presently we are following for all our Inhouse produced materials with Moving average price,we want to change all the materials to Standard price,is it possible to change & if in case if stock is there we will not be able to change,Shall we have to create New material codes with price control S.
whats the best solution
Thanks
Sandeep patil.

Dear,
ML is meterial ledger.
It is used in following cases.
- You have mutliple currencies and to see the stock in differnt currancies.
- You want to see the variances to be carried to different levels of BOM and see the periodic price of the product even though the price control is S.
Hence system will count all the variances and during ML closing steps calculate the variances and send to the higher level of BOM after chaning the periodic price of that raw materil. Hence at higest product level you will come to know exact production cost as well as level by level subassembly cost.
With this cost you can revaluate the material so that the S price will change to this periodic price.

SAP allows release of Standard Cost for Material with Moving Average Price

Hi
We set our Raw Material to use Moving Average Price (V) and price determination 2 (single level). And we activated material ledger.
During mass calculation of standard cost (CK40N), If user accidentally forgot to restrict the Raw Material for being included in calculation, the system calculate standard cost anyway, even though I set it as Moving Average Price. And user is able to release it too without any problem.
Why the system does not restrict it? By giving error maybe. Although as for now I can not find the wrong effect from releasing standard cost for MAP material, by your experience, is there any side effect that I should be aware of?
Thanks

CK40n is mass release of all materials. The release is not dependent on price indicator of the material in the master. It will calculate standard cost of all the materials.
Releasing standard cost estimate of raw materials does not have any side effect as long your calculation is based on moving average price.
Regards
Divraj

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

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

SBO - Shift from Standard Price to Moving Average Price

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