Subcontracting-moving average price update in finished good

Dear all,
We are having make to order scenario in which we are sending raw material or semifinished goods to subcontractor through purchase order .The price control is v in material master ,when processing is done at subcontractors end we are doing goods receipt with movement type 101 it takes price from purchasing info record .When i am analysing sales order it shows material/semifinished costs+processing charges,but in material master of finished product it does not update material master stock and value. kindly provide me solution as to how moving price gets updated in material master of finished product.
Thanks and regards
vijay

hi.
ya I am doing against sales order as we are having make to order scenario,we are sending raw material to subcontractor from our own stock and then my movement type 912 e we are sending to subcontractor ,I am receiving finished goods after processing charges for which migo transaction is done .After seeing sales order cost in tcode kkac i am able to see raw material cost+consumption charge.But as we are having mto scenario it remains as sales order stock and nothing gets updated in material master.My problem is if customer does not takes delivery of my finished product then i have to detach finished goods from that sales order through movement type 411 e and through movement type 412 e attached to another sales order,but since price have not been updated in material master of finished goods it picks up original price which was maintained as re.1 .Kindly provide me solution in above scenario
Thanks and regards
vijay

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Moving average price updation when goods receipt posted

Hi,
Please let me know in which tables the moving average prices changes get updated when goods receipt is posted. Also let us know the process as to how moving average price gets updated in the accounting1 view in material master.

Hi,
Its updating in the table MBEW.
To see the log of moving averae price updation, use report S_P00_07000139.
Example :
Stock quantity : 10No's.
MAP : 100Rs.
GR : 10No's@12Rs
Now MAP will become 11Rs (220/20)
Regards,
Prabu

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When we Purcahse materials for Project Stock "Q" during goods recepit the MAP is not getting Updated/Recalculated.Because of this when we do the planning for this material it takes the value in MM manually entered,it may be even Zero "0" price also.
How we can make the settings such that the MAP gets calculated for Project stock "Q" stock also.
Thanks,
RamananPV

Hi Ramanan,
'Q' stock materials constitute a separate stock segment, distinct from plant stock. This will not update moving average price of plant stock materials which are in a different segment. Hence when you create a PR in new project, prices are taken from the materil master at the plant level.
If you are making multiple procurement of the same material component for the same project segment, perhaps, you will see the updation in that stock segment.
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Can any one explain how the MAP of a material (SG/ SFG) whose price indicator is standard price gets calculated in system.
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Two Days Back the MAP was shown as 180
Yesterday The MAP was shown as 230
Today the MAP is Showing as 190 and it keeps changing.
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Is there any report or table from where I can find the MAP of the FG/SFG Material
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Hi
please check following link it will help you to calculate moving average price
[Moving average price calculation logic of material with Price Control "S";
Regards
Kailas Ugale

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Hi
Could anyone light on this issue,
Our client maintain moving average price for the semi finished material, need clarification on below points
1) What is the advantages and disadvantages due moving average price,
2) Which price in the material master after the production order settlement,
3) Is there any impact of this on WIP calcaultions
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Mohan M

Hi
there are no advantages of it, ONLY Dis Advantages!!!
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.
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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
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b. For prod order 2: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
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Regards
Ajay M

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?
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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.
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Regards

Price updation for Finished goods

We are updating the std. price for the finished materials through Costing run t.code CK40N. But in the last month run the price of the materials has decreased because the client has used inhouse produced material in place of a imported material. The inhoused produced material carries a lesser price when compared to imported material. Because of this the stock valuation has gone down. Now we have to revise the price so that the stock value should go up. We have arrived at a price. How do we post the revised price, MR21 and MM02 does not work, what is the other alternative for this. Pls suggest very urgent.
Warm regards,
Jagdeesh.

Did you try MR22
Thanks
Ashok

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Hi All
How does system caliculate moving average price for a finished product which has BOM, Routing when we do goods receipt for the production order...does MAP change for every goods receipt based on the goods isuues or confirmations to the production order.
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Hi,
The price will not change during the goods receipt, but when you settle the production oder and there is some danger in it.
Take the contents of that note into account [ Note 81682 - Pr.contr.V for semi-finished and finished products|https://service.sap.com/sap/support/notes/81682]
best regards, Udo

Moving Average price issue

Hello Experts,
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Dear Srinivasa,
Kindly check follwing things
1) Whether the material has got any goods receipt with higher value.
2) Whether the Future price is maintained for the material in Material master - Accounting view,with higher value and its validity
3) Check the changes happened in past related to MAP, in Material master MM03-> Display changes.
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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??

Finished Goods at Moving average Price.

Hi Experts,
In my company FG maintained at Moving average price, during the Go-live they fed the value manually in material master of FG.
Now at the time of production conformation system considering BOM for consumption, but for cost of production system just taking the value fed in FG material master.
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Sreenivas.P

Hi,
Ideally Raw Material, packing material should be maintained on Mvg Avg Price for your CO-PC (product Costing). Finished Goods / Semifinished goods should be maintained on Standard price only.
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2.Activity prices defined in KP26
3. Based on routing / master recipe, system will calculate activity defined for your resource / work center
4. Overheads from costing sheet
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Hi All
I am using moving average price for finished goods. My question is, Does the price on the material master record adjusts, when we do goods receipt on a production order( If there are variances)?
here is a scenario:
Moving avrage price of finished goods=2$ and total stock =1
it has two components in the Bom
Raw1-3$
Raw2-3$
Now when I am producing 1 qy of finished goods with 6 $ of Raw materials, moving average price of fert should be 6+2/2=4 $. But I noticed the moving average price in the material master record is not changing.
My question is, Does the MVP changes with production order goods receipt, If so, what setting should I change to acheive that functionality.
Thanks
Steve

Hi Guys
Thanks for responding
I am aware that sap does not recommend MAP for finished goods. But we have a weird requirement. And I am doing a demo on this. My thought on MAP is, It changes for every goods receipt. But when I am doing goods receipt on production order, It is not changing the MAP, Even though there is variance on production order. So, My question is, Did I miss any configuration ?

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Hi,
Till time, we were running our business process for product costing based on Standard price for FG and SFG. We were taking Raw material and packing material with mvg avg price. Now for one of our new company we are planning to initiate cost of FG, SFG based on moving avg. price as per business requirement.
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Thanks,
Taral Patel

Hi,
There won't be any difference settings for Price control V
Only accounting entry will change.
If you maintain Standard price then the Prod. variance a/c entry is
Production variance a/c Dr/Cr
COGM a/c Cr/Dr
If you maintain Moving AVG price then the Prod. variance a/c entry is
Stock Dr/Cr
COGM Cr/Dr
Rgds
Murali. N

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

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Dear Experts,
My MM period is open for 2 months (i.e for July and August Now) . One of our raw material is Limestone.
From July 1st there were several Receipts and Issues of limestone in SAP.
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We have created a Free of Cost PO for 25000 TON to account the excess quantity of Limestone in Stock.
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Thanks

Hi
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Material
Plant,storage location
Stock type
Batch
Special Stock
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The physical inventory process comprises three phases
1)Creation of physical inventory documents(MI01)
2)Entry of Count(MI04)
3)Posting the difference(MI07)
1)In the first phase ,you create the physical inventory documents.SAP systems provide several procedures for mass-generation of PI documents.After selecting the stocks to be counted and creating the PI documents,you print out the documents in order to start the counting process.A physical inventory document cotains data that include
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>The date on which the count has to take place
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Regards,
Sandesh Sawant

Subcontracting-moving average price update in finished good

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