Wrong Moving Average Price

Hello,
Suppose the price of a material was entered wrong in a Purchase Order and the warnings were ignored.
The goods are received and booked into stock ==> Moving average price + stock value are wrong!!!
What are the exact steps to undo these wrong bookings so the stock value + moving average price will be correct?
Thanks in advance!
Danny

Hi,
It depends on the stock movements in the mean time of these transactions.
1) In case the entire stock taken in using the Gr is stiil in the stores , you can achieve the correction by simply correcting the PO and doing the Invoice verification with the exact prices.
2) In case few issues for consumption are already effected , and the net stock in stores is less than the GR quantity , you can only reduce the error by doing the Invoce verification as soon as possible .In this scenario, some postings will be made to price difference account ,which means that the consumptions that have taken place will not be effected, with the updated MAP. But the stock available in stores get updated with new MAP.
Regards
Raghuramam.

Similar Messages

  • Moving average price becomes negative

    Dear all,
    I have read several threads about this subject but my scenario is a little bit different than the ones described so far:
    1 - I had a GR of 12 Tons for 2000 u20AC for material A
    2 - Product A had several production consumptions (movement 261) with the correct MAP
    3 - My user has accidently posted the invoice for 2000 u20AC, but for a quantity of 12 Kg. This caused a change in the moving average price, causing the following consumptions (261) to be wrong. This posting was done in January (already closed) but only detected now, unfortunately.
    4 - We have found the message when the user detected the mistake and tried to cancel the invoice.
    As we have dozens of consumptions of this product and dozens of sales orders of the finished product (for which product A was a component), I was thinking of making a value change in MR21 for component A, so that the following consumptions would be correct. And correct the MAP of the finished products, so that the cost of sales is corrected from now on.
    I would also forget about canceling the invoice.
    Can you tell me if this is the correct approach recommended by SAP? Has any of you faced similar issues that has a better solution?
    Thanks in advance,
    JL

    Option 1 : You have to cancel all the documents last come First to Nullify the effect.( Which I feel the best practice may be bit tedious). And do the postings as required.
    Option 2 : Do Manipulate with Movement type 561, means just Put 1 kg or .1 kg with very high value to mitigate the MAV value.
    Option 3 : You can go for MR21.

  • Moving average price not calculated properly

    Hi,
    For a consumable material moving average price(MAP) is getting calculated wrongly.
    There are 2 goods receipts taken in Jan'08 and Feb'08 at a unit price of 1250 and 1450 INR.
    Then there are around 10 Goods issues for a cost centre, Mvt type 201 taken for next few months.
    The MAP value has been calculated properly after the Goods issues.
    Again there was a goods recipt in Oct'08 for 1275 INR.
    The goods issue done in Nov'08 has created a problem and it has calculated  wronlgy i.e. instead of Rs. 800, the system has calculated issue price as Rs.3500.
    No value has been changed in MR21. No PO's has been created between these days.
    Can anyone help us...??
    Regards,
    Ramya

    Hi Ramya,
    You have informed in your thread that "for a consumable material..", If a material is procured for direct consumption, the consumption accounts in Financial Accounting are posted when the goods receipt is entered . The total quantity and value of existing stocks of the material are not affected. There is no Goods Issue.
    Now, if you procure the material for stock, then changes in Material Valuation due to goods receipts and invoice receipts are carried out automatically (ofcourse manually also) when the relevant transaction is posted.
    The extent to which the stock value changes depends on the sequence in which the goods receipts and invoice receipts are posted. The SAP System allows for both possibilities:
    - When goods are received before the invoice, the stipulations in the purchase order are used as the basis for posting.
    - When the invoice is received before the goods, the details on the invoice are used as the basis for posting.
    So, please look into the Invoices and the relevant GR/IR clearing account details. You may get a clue there.
    Regards,
    Narayana.

  • PROBLEM WITH MOVING AVERAGE PRICE

    Hi,
    Correct me if I’m wrong, but from what I know the moving average price should only change or be recalculated when purchases or goods_recipts are made, otherwise items should be consumed at a FIXED moving average price (cost). 
    I´ve noticed when looking into the Inventory Audit Report that the moving average price is changing in my installations and I see that SAP BO recalculates it every time an issue is made. This last thing only happens when the total amount of the transaction is rounded or left with 0 decimals and the other types such as prices, rates, quantities, percent, etc. are left with 2 or 3 decimals.
    Because of my country settings, the total amount has to have 0 decimals (I live in Chile and we don’t have cents in our currency) and the moving average price of an Item should not change when an issue is made, can you help me with this?
    Thanks and best regards to you all.
    Fernando

    Hi Nagesh,
    Thank you for your quick response.
    I understand what you say, but moving average price should not change when an issue is made and that´s what is bothering us.
    The difference between what it shoud be and what SAP BO is calculating is our concern, ie: let´s say the number of transactions is 100, would that difference be negligible?
    Here is an example:
    Goods issue:
    SO 8     11     -10,49     166,67     -1.748     99,35     16.559
    SO 9     11     -10,49     166,673     -1.748     88,86     14.811
    SO 10     11     -10,49     166,678     -1.748     78,37     13.063
    SO 11     11     -10,48     166,684     -1.747     67,89     11.316
    SO 12     11     -10,56     166,681     -1.760     57,33     9.556
    Note that coma (,) is decimal separation and period (.) is the mile separator.
    Where the 3rd line is the quantity of the goods issue, the 4th is the moving average, and the 5th is the total quantity of the issue.
    So you see 10,49 x 1748 = 1748,39977= 1748(SAP) and then SAP BO recalculates the AVG. Price.
    The problem I was talking about was the difference of the stock AVG Price with one hundred transactions or so... now the difference seems negligible (166,7 - 166,681 = 0,011).
    Can you see it changes?, is that a bug?
    Thank you
    Fernando

  • 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

  • Updating the material moving average price in return to vendor process

    Hello,
    Our finance department is saying that the affect on the moving average price in our return to vendor process is wrong.
    At the moment the moving average price is changed according to the material price in the return PO.
    Our financial department says that the moving average price shouldn't be affected at all by a return to vendor.
    Can someone tell me how to customize the system according to this request?
    Thanks,
    Sivan

    Dear Friend,
    In COOIS Report or MB51 report, Select the list as Documented goods movement and in production order field give the production order number and execute. After executing, if any goods receipt has been done for the same than system will show the same with these it will also show the value of the same. If its not showing than go to change layout and select the same.
    Thanks and Regards,
    Jitendra Chauhan

  • MIRO : Moving average price for material is negative

    Hi,
    i post an invoice but the system gives me this message : "Moving average price for material is negative: 120462 M411"
    i tried to change the average price (MR21) but really it is not a solution.
    is there any other solution to post this invoice?
    Regards
    Edited by: jehade el aoumari on Oct 22, 2008 2:06 PM

    Moving average price negative error comes when the correction in price of material made in MIRO is more than its moving average price in material master.  There are three ways to solve this error,
    MR21 as you said, or
    Reverse all previous transactions like GR in the sequence they were made, amend the PO and make fresh GR. or if this is not possible,
    Complete the MIRO with wrong amounts and pass FI jv to rectify the wrong FI impact....
    Hope this helps you..

  • Abnormality in Statistical Moving Average Price

    Hi All,
    I have a material maintained with standard price "S". Statistical Moving Average Price of the material has gone abnormally after 6 months of creation of material. Thisi is causing dump in posting goods movement as the system is calculating moving average price and there is a field over flow so the screen is going to dump while posting goods movement due to some price variance.
    I have seen MBEWH and MBEW, there I saw huge variances recorded in statistical MAP of material
    Here I know there is one SAP note suggests the solution how to correct this.
    But I am concerned with route cause analysis; I have verified the following and found every thing is OK, only there are small price variances which can never cause huge abnormality in statistical moving average price.
    I have verified
    (a) Changes in Material Master MAP field
    (b) MB51 - All goods movements related to that material - No abnormal price variances
    (c) ME2M to see in any purchasing documents, if price is given in USD or Euro; but it is not so
    Is there any thing I missed, could you please suggest.
    Rgds
    Raul

    this is usually caused by the fact that the PO price was wrong at the time when the GR was posted.
    This PO price gets changed later by purchasing guys to allow posting of the invoice without variance.
    Hence you have to check PO document change history to find the PO which was adjusted in the price.
    MR51 should show you that the GR was posted with a small value. Download MR51 to Excel and calculate the MAP for each line, this will show you which one has an exceptional MAP.
    Edited by: Jürgen L. on Sep 30, 2010 7:05 PM

  • Unexpected change in moving average price

    Hello All,
    As per my understanding, the material moving average price will only be changed when there are any new receiving with different material price. However, the situation for this material average price is not as what I expected, it has unexpectedly rise for two days and then again became normal.
    I have checked and found that only 261 movement was carried out.
    I have also checked in invoice, but nothing is wrong in that.
    Kindly guide me on the same.
    Regards,
    Joginder

    Hi Joginder,
    The MAP is recalculated at every relevant movement & invoice. Please
    review the following notes which explain how the MAP is calculated and
    what can change the MAP.
    518485  FAQ: Valuation of goods movements
    518368  FAQ: Valuation for the purchase order
    209864  Moving average price is disproportionately large
    185961  Moving Average Price Calculation
    Regards,
    Kevin

  • REM wip and moving average price

    Hi,
    I am working in REM scenario. my fert item is having moving average price say Rs 2.Currently zero stock of finished item. I am having a planned orderA quantity 10  from Oct 1st to nov 30th. when i do backflush at nov 30 , i do assembly backflush and post auto GR of 10 quantity. after doing settlement, i got my moving average price as Rs12.
    I have another planned order B for quantity 20, same finished item from oct 15th to dec15th. On nov 30th when i am doing component backflush or activity backflush of second planned order( i am not doing assembly backflush on nov 30 because this order is not yet completed, it will complete on 15th December), system is posting all cost on my existing stock of finished item and increasing the moving average price of finished item from Rs 12 to Rs 17.
    But this is wrong because cost should not exceed for existing stock, cost should be posted for WIP..
    Please tell me how to correct this?
    how to calculate WIP in REM? is it mandatory to go for reporting backflush? i have only one operation in my rate routing i.e labor hours is my only operation  in 0010.
    Regards.

    Hi,
    Thanks for ur help.
    But my doubt is something different!
    If i have a planned order' A'( qty 10)which is completed in Novemeber month and another planned order 'B' ( qty 20) which is still in WIP on November end, and at this stage if I do backflush for planned order A, cost flows properly and finished item is put in stock with some moving average price.But when i book labor hours again for planned order B, it books cost. But this time i do not do assembly backflush because production is not yet finsihed.so stock quantity is still the old one i.e 10 qty.So second cost booking goes to the stock item of 10 qty and increases the moving average price. system dfoesnt understand that second labor hours is booked for second planned order . this is happening because both planned orders are of same finished item.
    please reply.
    please tell me what is the way to do reporting backflush. what settign we need to do? can it solve my issue?? because my target is to book cost in case of second planned order as WIP and do NOT effect the moving average price of existing stock.
    Regards.

  • Moving average price for article is negative

    Hi gurus,
    We are facing this error during invoice verification,
    Moving average price for article/material  is negative : article/material  155521 4001
    I have searched the forum and got the transaction S_P00_07000139 to track how it went to negative,
    but i am having difficulty to identify which column i have to look into to see what caused the negative price.
    If i am in a wrong direction, please advise me gurus how to get rid of this error and measures to avoid in future.
    Thanks in advance,
    Kind regards,
    Gopio.
    Edited by: Naga Gopathi on Nov 27, 2009 12:59 AM

    guys i am facing exactly the same issue..........
    moving average price is negative for the material X.....plant Y and its happening in case of return PO
    please suggest the solution
    I have also checked the change log and unfortunately there are no changes done  in the price for the line item
    Price in PO 10 INR
    GR movement type 161 10 INR
    Rebate at GR 1 INR but this is a statistical condition type and document type is NBR
    Edited by: Sap: IN on Apr 27, 2010 9:29 PM

  • Moving Average price, Std price and FIFO

    Hi folks,
    It seems our client wants to use FIFO valuation for its items rather than Moving Average because FIFO gives them an actual price for their Finished Goods (the client does not have any manufacturing).
    I beleive the question the client wants answered is: <b>Can they can use the FIFO valuation within COPA-AB (account based) instead of costing based</b>.
    The client manager seems extremely sure that this can be done in COPA. Can it be done? If so, how would we go about it? My understanding is that COPA only captures the cost with the revenue. It captures the cost the moment you ship a product.
    I think CO-PC handles this, however I think you need PP implemented as well and the client is not implementing PP at this time. I could also be totally wrong about all of this.
    Hopefully this all makes sense. Unfortunately I cannot upload an example of what I mean.
    Appreciate any thoughts on this.
    Thanks!

    You are absolutely correct.
    COPA is used for reporting cost & revenues for internal use. It has nothing do with inventory valuation.
    It is product costing which is used for material valuation in manufacturing scenario. As you mentioned, that products are not manufactured. there is no need to implement PP & product costing.
    In SAP material is valuated either at moving average price or standard price a sper price control in material master. However, there are functionality in SAP where materials can be re valuated at period end for legal reporting. Explore the functionality in MM -> balance sheet valuation (do not remember the exact path). In this materials can be re-valuated as per various principles or can be done via user exits.
    Hope it helps.

  • 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 ?
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    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.

  • 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?
    Thanks
    Deepthi...

    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.
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    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

  • Moving Average Price for Sales stock and Project stock of a material

    Hiya Gurus,
                     I am developing a report to display inventory details. My requirement is that I have to display the Moving average price of a material for all Valuation type. I also need to display the Moving average price if a material has got Project stock or Sales stock.
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    Cheers,
    ZIa

    Hi
    can you look at tables
    EBEW                             Sales Order Stock Valuation
    QBEW                             Project Stock Valuation
    Nat

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