Wrong amount in LC

Question

Hello experts
Ok this is what is going on:
The stock and the stock valuation was 0 at the end of octobre, and the MAP for the material was 8,64. I see this through table MBEWH
According to the MR51 after confirmation there was a material movement class 101 with quantity 743,731 M2 (which is the base unit of measurement) valuated 6425,84 in LC, I divide to get the unit price and I get 8,64, which is fine.
After settlement a variance of 874,88 is added to stock value. I calculate what would be the new MAP and I get 9,81.
However, the next movement a goods issue is for 678,605 M2 and the amount in lc is 5944,49, when I divide to get the unit price I get 8,76, which defers from 9,81.
The problem continued, so the GI and GR were been issued using a price different from the MAP displayed on the accounting view.
The MAP price peaked when there was a big GI so when the amount in lc was calculated with a smaller price the stock value didn´t decreased as it should and the new MAP increased.
After this increment was noticed the price was adjusted through MR21 and the problem is gone as the the GI and GR amounts in LC are using the correct MAP.
Any ideas why this occurred?

Answer 1

Hi
You have done a big mistake and you are going to face it again n again if your Price control is V and you manufacture In House...
for in-house mfg, your price control should always be S.. Else, you face this situation which is explained with an example below
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