Standard price in HALB

Hi SAP Guru's,
I have been asked in an interview as why we maintain Standard Price in HALB material Type.
Can any one please give some light on this.
Thanks
IS

Dear,
I would like to suggest as follows:
Material type - HALB
Semifinished products can be procured externally (sub-contracting) as well as manufactured in-house.
They are then processed by the company. A material master record of this material type can contain both purchasing and work scheduling data.
The reason for SAP recommends Standard price for HALB type material is, the material price effects the enterprise finish product selling price and effects on customer / market price.
For example if an enterprise manufacturing Televisions. The finish product is Color Television.
Client made a contract with outside vendor for assembly of Picture tubes with screen.
Since the client fixed the price or have an idea about the finish product of color television, the price control on subcontract i.e Picture tubes assembly with screen is compulsory. Then only the client can achieve the final product price as fixed earlier.
If for these material the moving average price is maintained in Material master, there are chances are there that the finish product market value / price changed daily.
Regards,
Syed Hussain.

Similar Messages

HALB moving or standard price

Dear Experts,
If a material is a HALB category ..... is in house production and also send if for job work outside ..... it is maintained in in standard price or moving avg price ?
Regards,
Prakash
Moderator: Before you post: Rules of Engagement

Dear Sir ,
U try to under stand I produce a material then after which is a semifinished goods under category HALB
Then after job work required , so i send it to outside ans for this i created a service order
Now the material is standard price or moving avg price
I am confused this thing because in finished goods in material master we given valuation class 7920 , Price standatd pricce *****
category is FERT
In case of raw material valuation class 3000 Price moving avg price ******* , category is ROW
Which price we given the above material which is HALB category and valuation class 7900 ,And i think price is both moving avg & standard
Kindly tell
Thanks,
Sahoo

Standard price control

HI
i want to know
Standard price control updates
A)standard price
b)moving price
c)both
which is correct ?
Prashant

Hi Prashant
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.
Company generally use moving average on purchased materials with small cost fluctuations. It is most appropriate when the item is easily obtainable. The impact on margins are minimized which reduces the need for variance analysis. Furthermore, the administrative effort is low as there are no cost estimates to maintain. The cost reflects variances, which are closer to actual costs.
The semi-finished goods (HALB) and finished products (FERT) are valuated with standard price because of the product costing angle.
SAP recommends that standard price to be used for FERT and HALB.
How SAP calcualte the moving average price
Goods Receipt for Purchase Order
Balance on hand quantity + Goods Receipts quantity
Balance on hand value + Goods Receipts value
New Moving Average Price = Total Value / Total Quantity
Regarding Std price -
Std Price is maintained in accounting view. System doesn't post GR based on purchase order price. It posts GR taking into consideration the STd price from material master.
If Std price is 100 and PO price is 110
System will post the debit inventory account with 100 and post 10 to the price diffence account.
Regards
Rajesh
Do reward if useful....

Is it possible to maintain moving average price u201CVu201Dfor HALB & Costing ?

Dear Gurus,
is it possible to maintain moving average price u201CVu201Dfor HALB Material which can procured from vendor & produced from plant in-house & costing the same ?
Kindly help

1. Yes, you can have price control as "V" for HALB material.
2. Split valuation is required to be maintained, if you want to use the same HALB material for procurement as well as inhouse production.
3. You can have standard cost estimates with price control as "V'. But, the same is not recommended by SAP. It can give a wrong picture in scenarios like settlement of a production order having GR quantity more than the Stock quantity.

Standard Price Move Average Price

Hi guru:
Can anyone tell me the difference between standard price and move average pirce or what's the relationship between them?Does it affect posting for invoice receive/goods receive?

Standard vs Moving Average Price
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.
Company generally uses moving average on purchased materials with small cost fluctuations. It is most appropriate when the item is easily obtainable. The impact on margins are minimized which reduces the need for variance analysis. Furthermore, the administrative effort is low as there are no cost estimates to maintain. The cost reflects variances, which are closer to actual costs.
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 back flushing of material and labor, production inefficiencies (higher cost) or efficiencies (lower cost). This is not a standard accounting and costing practice.
Refer to OSS note 81682 - Pr.Contr.V for semi-finished and finished products.
SAP recommends that standard price to be used for FERT and HALB. If actual price is required for valuation, make used of the functions of material ledger where a periodic actual price is created which is more realistic.
e.g. how SAP calculate the moving average price
Goods Receipt for Purchase Order
Balance on hand quantity + Goods Receipts quantity
Balance on hand value     + Goods Receipts value
New Moving Average Price = Total Value / Total Quantity
Invoice Receipt for Purchase Order
Invoice price more than Purchase Order price
u2022     additional value add to Balance on hand value then divided by Balance on hand quantity
Invoice price less than Purchase Order price
u2022     difference is deducted from the Balance on hand value (up to 0). The rest of the amount will becomes price variance. This will result in Balance on hand value is zero while there are Balance on hand quantity. If the Balance on hand value is enough to deduct, then the remaining value will be divided by Balance on hand quantity.
When your Goods Issue price is constantly greater than your Goods Receipt price, it will result into zero value moving average price.
OSS note
185961 - Moving Average Price Calculation.
88320 - Strong variances when creating moving average price.
Never allow negative stocks for materials carried at the moving average.
Hope thil will help you.
Cheers,
Parag Mahajan

Report for standard price of a material -

Hi ,
Could you please tell me the report, which gives the standard price/moving average price of material(s).
Thanks
Chandra

Hi,
Go to MBEW table..
SE16 enter table MBEW
in the main screen
go to Settings> Field selection in that select fields
VMVER Moving price
VMSTP Standard price
and execute...
Thx
Raju
Edited by: Manohar Raju on Mar 14, 2008 1:49 PM

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

Explanation about invoice reversal for standard price.

Hi,
Please see the excerpt from SAP help below. I extracted this example in sap help found at http://help.sap.com/saphelp_47x200/helpdata/en/fc/85c5371e5db25fe10000009b38f8cf/frameset.htm
With regards to the example found below i dont understand why we cant do a simple reversal of the invoice 1 as follows :-
debit vendor account by 500
and credit GR/IR account by 500
Instead of the above simple reversal, the sap help is saying that we need to use a different stock value of 550. Can someone explain the following 2 questions :-
1) Why shd we use this 550 value instead of the 500?
2) What will go wrong if we use the value 500 to do the reversal?
Excerpt from SAP help :-
Goods receipt
=============
The stock account is posted with the receipt value based on the standard price.
Delivered qty X standard price
50 pcs X $10/pc = $500
The offsetting entry is posted to the GR/IR clearing account.
Invoice 1
=========
The GR/IR clearing account is cleared on the basis of the invoice price.
Invoiced qty X Invoice price
50 pcs X 10/pc = $500
The offsetting entry is posted to the vendor account.
Invoice 2
=========
The GR/IR clearing account is cleared on the basis of the invoice price.
Invoiced qty X Invoice price
50 pcs X 11/pc = $550
The offsetting entry is posted to the vendor account.
Reversal of invoice 1
=====================
The invoice quantity is greater than the goods receipt quantity. The credit memo quantity is covered by the quantity of the invoice surplus. The GR/IR clearing account is posted as follows:
qty X (Clearing value - goods receipt value / Invoice qty - Goods receipt qty) = 50 X (1050 - 500 / 100 - 50) = 550
The credit memo amount is posted to the vendor account. The credit memo amount is different to the posting on the GR/IR clearing account, so the difference is posted to the price difference account.

hi,
THis is because while making the credit memo, in your stock you don't have the stock coverage so till the stock coverage its posted to the GR/IR account while after that ie. the rest amount is posted to the PRD account...
If Credit memo is of 500 then, the system shd hit GR/IR account only..because there is a stoc kcoverage for the same...
If credit memo is for 550, then both GR/IR account and PRD will be hit...
Hope its clear...
Regards
Priyanka.P

Report on difference between PO price and Material standard price

Hi,
We need a report on Purchase price difference, which is report showing Open PO price & Material standard price, if there is a price difference
This need to be run every day to avoid buyer changing price at PO level unless there is a valid reason
Similarly difference if any between Schedule agreement price & Material master standard price
Please help

Hi,
There is no standard report available for this.
You need to develop one.
Considering your requirement, it can be achieved with a query as well provided you do not need complex functionality out of the report.
Hope this helps.

A Function or BAPI to get Material Standard Price?

Hi All,
I need a Function or BAPI to get the Material Standard Price when the following Criteria is given;
1. Material Code
2. Plant
3. Period
4. Year
5. Company Currency (Optional)
I need only the Standard Price and Price Unit. Please give me a example with sample values.
Thanks,
Kishan

Sri:
I need only the Standard Price and Price Unit
there is no specific FM for that.
you need to write small select query in FM than use this custom FM into your program.
Amit.

Price valuation with standard price in case of external procurement

Dear All,
I have the following scenario with my client.
All the materials will be valuated with price control S, whether procurement type is E or F. We don't have any problem if procurement type is E. But where as if procurement type is F and price control indicator is S, the system calculating the moving average price and as well as standard price is also updating for some materials. For some materials there are not moving average prices.
1. Can any one tell me when SAP calculates both moving average price and standard price? is there any setting to be done.(procurement type F and price control S)
2. there are differences between moving average price and standard price, ofcourse there may be a difference, but in some cases the difference is more and higher than the standard price, this may cause financial loss to the company. How can solve this.
full marks will be awarded.
thanks & regards,
Ramesh Balivada

Hi
Moving average is updated for External purchases although price control is standard price in all cases where there are movements in materials i.e., when they are purchases...
Check for the materials where there are no updation of moving average and externally procured materials, there might not be any purchases..
There would be no losses as even though it is calculating mov avg price, the stock, consumption is calculated with std price only.
Check both the cases where there are std prices and check for cases where there are both prices getting updated.
Regards,
Suraj

Goods Receipt for Material which has no Standard Price in Process Order

Hello everyone, is there a way by which we can prevent GR for process order which contains material that does not have standard price? And if ever we received material using process order how can we correct the process order right after we correct the standard price.

Hi,
i just don't know why you raised new thread as already ur previous thread is not closed
Now just let us know whether system is throwing any error
or what exactly happing in cofirmation screen
Go to OPK4, here
under goods movement there is option all components just tick it
then in second tab Gen individual entry tick Goods movement & termination for incorrect goods movement
Coming to GR
what is storage location ur giving
just check in MMSC, whether this storage location is activated for the header material ( GR )
Added
Plz Go through all possible options
[Auto GR is not happening.;
Regards
kumar
Edited by: kumar kumar on Nov 10, 2009 2:25 PM

Mass Change Standard Price in Accounting view of material master

Hi anybody,
I am maintaining more than 5000 records material master . Each time change material prices using MR21, but I don't want go MR21. need to develope one abap program for change material standard prices using BAPI or normal ABAP Program. how do I develope?
please give me sample program for that.
Thanks
S.Muthu

Hello Mani
I have already checked all the open items.....
No sale order. No entry in table MSEG.
Only one PO without GR.....So that should not make any difference.
Br
Avinash

Issue in Update Standard Price using BAPI_M_REVAL_CREATE PRICE CHANGE

Hi folks,
I was using BAPI_M_REVAL_CREATE PRICE CHANGE   to update standard price, but this BAPI is not working for me..
Can anyone give me an example to run it?
My code is like this:
        t_comp_code                              = t_thold_final-bukrs .
        t_material_price_list-plant             = t_final-werks.
        t_material_price_list-material         = t_final-matnr.
        t_material_price_list-val_type         = t_final-bwtar.
        t_material_price_list-change_std_price = t_final-stprs.
        APPEND t_material_price_list.
        CLEAR t_material_price_list.
      CALL FUNCTION 'BAPI_M_REVAL_CREATEPRICECHANGE'
        EXPORTING
          comp_code           = t_comp_code
          pstng_date           = sy-datum
        IMPORTING
          ml_doc_num          = w_mblnr
        TABLES
          material_price_list = t_material_price_list
          return                   = t_return1.
Please help as after runing this there no error in return and no material document no created.
thanks,
varun
Edited by: Varun Gupta on Jun 12, 2009 4:06 PM
Edited by: Varun Gupta on Jun 12, 2009 4:08 PM

No idea
no error in return and no material document no created
just try debugging it

Standard price is showing in the table wrongly.

Dear experts,
When I check in the material master current standard price is "961200" for 1000 units
When I check in the "MBEW" table the amoun is displaying as like this "9612.00"
Although in the table the value is 9612.00 , the right amount is 961200 HUF. It can never be 9612.00 as HUF currency does not have decimals,
Standard price is showing in material master for 1000 units as 961200. But in MBEW table it is showing for 100 units as 9612.00.
Could any body help explain why the system is showing in table for 100 units.
Regards,
Mr.Rao.

Hi,
The system is working as designed in this case.
Please, kindly check the information contained under the notes for a general explanation of this issue:
126857 - Display of amts with correct decimal places in SE16
53206 - Processing of currency fields
It looks a bit strange that the values in the table are different then in the material master, but I can assure you this is only a
way of storage.
I guess you are using SE16 or SE17 to view the table MBEW-VERPR.
Since the currency key for this field is contained in another table T001, the display behaves as described in note 126857 (with two decimal places).
The display in MM03 and in other transactions or reports like MB52 or CKM3 is correct. Therefore, it is not a program or system error, but just a matter of how the system stores and displays the data in the technical database transactions.
If you wish to build a query using these data, please take this way of storage into account and make your own calculations accordingly.
If the decimal places for HUF is defined as zero the table will show a value of price /100. If you choose a currency
with 3 decimal places the value in the table will be price * 10 and so on.
-> Decimal Places for Currency and conversion
Decimal Places     value of price in stored in table
      0                     /100 (Divide 100)
      1                     /10 (Divide 10)
      2                     No Conversion(Standard)
      3                     * 10 (Multiply 10)
regards
Waman

Standard price in HALB

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