Moving Average Price-Calculation VIJAYESH V.V Business Card Company: SAP labs Posted on Dec.

16, 2009 06:32 AM in Manufacturing

Material valuation procedures

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In an manufacturing firm most of the externally procured materials are stored before they are required for production or sales. The stock of such material must be updated on quantity and Value basis .The material valuation determines and maintains the stock value of a material. The following formula is used to calculate the stock value Stock value = stock quantity * material price . The valuation area is an organization level at which material is valuated . It can be either company code Or plant which we can configure in the customizing transaction OX14 ( Menu path is Customizing Enterprise structure -> Definition -> Logistics General -> Define valuation level) The price control procedure in material master record determines the value used to valuate the goods receipt Of a material. Material valuation can be carried out according to the standard price (S price) or the moving Average price (V price) Standard price System calculates the total stock value for materials with standard price control as follows Total value = Standard price * total stock Moving average price System automatically calculates the moving average price for every goods movement as follows Moving average price = total stock value / total stock quantity Calculating MAP variance Go to the table MBEW for the material and plant . Make note of the number under MBEWKALN1. Go to the table CKMI1 with that number. Enter the number at field KALNR. Follow the menu path Options -> User

parameters change to ALV Grid display. Now select the two columns for DATUM and UZEIT sort according to both of them (in ascending or descending Order, as you prefer).Here locate your document. You will see: the stock before the posting (LBKUM), the value before the posting (SALK3) and a column with the MAP and another with the standard price

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Each field represent the following BDATJ POPER AWTYP AWREF AWORG GLVOR LBKUM SALK3 VERPR STPRS BWKEY DATUM UZEIT Year Posting period Reference Transact. Reference Document Reference Org Unit Business Transaction Total Stock Total Value Moving price Standard price Valuation Area Entry Date Time of Entry

Based on the FI document of each reference document we can able to see how each posting affected the MAP variance . Reference content

http://help.sap.com/saphelp_470/helpdata/en/47/60ff4849f011d1894c0000e829fbbd/frameset.ht m SAP Notes 209864 - Moving average price is disproportionately large 185961 - Moving Average Price Calculation 88305 - Moving average price zero set; no accounting doc. 88320 - Strong variances when creating moving average price 79483 - MM-IM: Creating the moving average price.

VIJAYESH V.V Senior support consultant IS-A/MM SAP Active global Support SAP labs india .