Using Perpetual Weighted Average (PPAC) as costing Method in R12.1.1

I have setup a company having two operating units both using same ledger and same calendar. One of the operating unit is using Period Moving Average Costing (PMAC) and the other one is using Perpetual Weighted Average (PPAC). Both operating units have manufacturing organizations where batches are being created and cost of finish product is based on the ingredients consumption of the batch. My issue is that I cannot figure out how the cost is being computed for an item that has been produced from a production batch using the PPAC method. For the PMAC, I can see that it is using previous month balance and cost and compute it with current transactions data. But for PPAC, it is difficult to analyse the cost, and the only explanation from oracle note said that the calculations is based on all transactions within ALL period in the costing calendar. How will I calculate the cost for a specific item if the calendar started from July 2009. Should I compute the cost for an item for all transaction from July 2009 until April 12 ? Should I keep different calendar for each financial year or only one calendar is enough?

I just waring you to be careful about PPAC.
1. The value cost adjustment and unit cost adjustment will use to calculate item cost in single period only.
2. Cost revaluation will make you can't reconcile between GL amount and inventory valuation.
3. If your stock is 0 at the end of period your GL amount will still have value but inventory valuation is 0.

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Any update will be very appreciated .....
Regards

Your driving table will be mtl_material_transactions.
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513-325-9026

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I want to understand correctly the meaning of the rollup on 'Average' costing method.
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hi,
u cannot perform rollup on average costing method.

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Hi Chithra,
I'm a bit confused by your question. FIFO is just an inventory management method, while moving average price is simply a way SAP calculated the value of the stock. How is your company keep track of the inventory value in FIFO? What kind of calculation or formula does your company apply to get the month-end closing value? There shouldn't be much impact, I think. Because, at the initial stage, you will be using the value from old system, upload it to SAP to use it as opening value for your stock.
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Hi,
For general ledger :
http://help.sap.com/saphelp_nw70/helpdata/en/57/dd153c4eb5d82ce10000000a114084/frameset.htm
This is the best how-to guide on AP,AR,GL and TAX.
http://help.sap.com/saphelp_nw04/helpdata/en/af/16533bbb15b762e10000000a114084/frameset.htm
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Srikanth.

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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
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Thank you
Kind Regards
Apsara

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Remi,,, hi many thanks!! It worked out well!!!
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Weight Average Cost

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Neha

hi,
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Hi Guys
How are you ..every body
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Hi
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SSM - Doing a Weighted Average in Time Series Consolidation

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I would like to know what will be the effects if I change the GL Cost Method in the Fiscal Policy. My client wants to go from PPAC to Lot Costing. But I will also want to know what will be the effects if I go from an average cost method to the Standard cost method.
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Hello
I am in R11 and implementing R11 , can someone help me with documentation?.
I have defined the lost cost method and assigned it to the GL Cost Method in the Fiscal Policy, when i run the cost update process with the alternate method for lot costing ( Pmac) a warning error displays indicating the Cost Method in the Fiscal Policy is not the same as the one indicated on the actual cost process ( since i have ingredients based on the actual cost method ant not lot controlled i have to run this process previously)
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mariana
[email protected]

Moving Averge Cost Method

Dears,
I would like to use the Moving Average Cost Method at OPM,
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Moving Average Cost Method from Oracle Point of View (PMAC),it Calculates the Average Cost for all transactions at the period , get one average cost and Post the all Transactions Journals with the only one cost (which calculated against all transactions).
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Regards
for more explanation please advise

OPM allows third cost method - Lot Costing. You have to figure out if this suites to your requirement.

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I am using Microsoft Project Standard 2010.
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hkd66,
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Creating Weighted Average Sub-Totals in Standard Apex Report

Based upon the below query, I am trying to have a Standard SQL report produce Weighted Average sub totals for 4 columns
SELECT   Pool
, order_by
, Pool_order
, Perf_Non_Perf
, CurrBal
, LowVal
, HighVal
, LossHigh
, LossLow
, CalcCurrBal
, DECODE(CurrBal,0,0,(LowVal/CurrBal * 100 )) AS LowPercent
, DECODE(CurrBal,0,0,(HighVal/CurrBal * 100 )) AS HighPercent
, DECODE(CalcCurrBal,0,0,(LossHigh/CalcCurrBal * 100)) AS LossHighPercent
, DECODE(CalcCurrBal,0,0,(LossLow/CalcCurrBal * 100)) AS LossLowPercent
From (
SELECT   Pool
, 1 as order_by
, Pool Pool_order
, Perf_Non_Perf
, Sum(Current_Balance) AS CurrBal
, Sum(Low_Value) AS LowVal
, Sum(High_Value) AS HighVal
, Sum(Calculated_Cumm_Loss_High) AS LossHigh
, Sum(Calculated_Cumm_Loss_Low) AS LossLow
, Sum(Current_Balance_to_Calc_Cumm_L) AS CalcCurrBal
FROM Current_Data
GROUP BY Pool, Perf_Non_Perf
ORDER BY Pool, Perf_Non_Perf DESCThe columns in question are:
LowPercent
HighPercent
LossHighPercent
LossLowPercent
Any ideas other than using a union to add the sub-totals in as a separate query (trying to keep this confined to one query if possible)..
Thank you,
Tony Miller
Dallas, TX

Tony,
The PL/SQL forum may answer this better but had you considered the ROLLUP or CUBE GROUP BY functions? ROLLUP would look like this in your query:
SELECT pool,
         order_by,
         pool_order,
         perf_non_perf,
         currbal,
         lowval,
         highval,
         losshigh,
         losslow,
         calccurrbal,
         SUM (DECODE (currbal, 0, 0, (lowval / currbal * 100))) AS lowpercent,
         SUM (DECODE (currbal, 0, 0, (highval / currbal * 100))) AS highpercent,
         SUM (DECODE (calccurrbal, 0, 0, (losshigh / calccurrbal * 100)))
            AS losshighpercent,
         SUM (DECODE (calccurrbal, 0, 0, (losslow / calccurrbal * 100)))
            AS losslowpercent
    FROM ( SELECT pool,
                   1 AS order_by,
                   pool pool_order,
                   perf_non_perf,
                   SUM (current_balance) AS currbal,
                   SUM (low_value) AS lowval,
                   SUM (high_value) AS highval,
                   SUM (calculated_cumm_loss_high) AS losshigh,
                   SUM (calculated_cumm_loss_low) AS losslow,
                   SUM (current_balance_to_calc_cumm_l) AS calccurrbal
              FROM current_data
          GROUP BY pool, perf_non_perf)
GROUP BY rollup (pool,
                 order_by,
                 pool_order,
                 perf_non_perf,
                 currbal,
                 lowval,
                 highval,
                 losshigh,
                 losslow,
                 calccurrbal)
ORDER BY pool, perf_non_perf DESCJeff

Using Perpetual Weighted Average (PPAC) as costing Method in R12.1.1

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