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Former Member

Standard Cost to Moving Average - Calculation

Hello SAP experts,

I need your help with one issue. We are changing from Moving Average to Standard cost on our SAP, because we are having issues with the Inventory Audit Report (negative values with zero quantities). Unfortunately the 'Manage Item Cost per Warehouse' is not an option for us, because our main company does not agree with that.

Well, going to the question: is there any way that we can use to calculate the Moving Average cost of all the items? A good report was Inventory Valuation Simulation Report, but unfortunately it just help with the items that are purchased, it does not calculate for the manufactured items.

Thanks,

Pedro Pagliosa

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4 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Dec 19, 2013 at 01:11 AM

    Hi Pedro,

    If you change from Moving Average to Standard, it will not be realistic to calculate Moving Average cost for all transactions. Standard cost means static cost.

    Thanks,

    Gordon

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    • Former Member Former Member

      Moving Average is causing problems on the Inventory Audit Report. We have 0 quantities and a value assigned for a lot of items.

      Let's say we buy an item for $5. It will enter on our Quality warehouse. As soon as we transfer it to another warehouse (let's say Raw Material), it will transfer with the Moving Average Value (let's assume that it is $10).

      So now we will have in the quality warehouse:

      Quantity: 0

      Value: -$5.00

      Thanks,

      Pedro Pagliosa

  • Posted on Dec 26, 2013 at 07:44 AM

    If you manage item cost by company, you should check item cost as whole company level. If you only check one warehouse, you maybe see some inconsistency, such as qty =0 but value <>0

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 06, 2014 at 11:21 PM

    If that is your case, change to standard cost may still cause other issues. The moving average cost method is easier to control compare with standard cost.

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  • Posted on Jan 09, 2014 at 01:28 AM

    Hi,

    Please refer SAP note:

    869071 - Changing the valuation method items

    Thanks & Regards,

    Nagarajan

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