MAP in Case of Negative Stock?

[Former Member]

Hi,

Let me describe it.

I have material with negative stock active

I have initial stock of 50 and price is 10 with price control "V' Total stock Value is 500 .

When i issue 100 quantity to production then material stock will show 50- & total stock value 500- & MAP 10 Only.

Now i will create a PO with quantity 200 and price 15 and i will do GR for 200 quantity.

Now what price it will update in material master....

MAP update 15, it is correct or wrong.

How it will update what all the data from material master pulled at the of MAP Calculations for Negative.

My Calculation 1.

After new GR

MAP =  (Total Value old  + Gr value)  /  (Total stock old + GR quantity).

MAP = (-500+3000)/(-50+200)

                (2500/150)

MAP New Value = 16.66

My Calculation 2.

MAP =(0+3000)/(0+200)

              (3000)/(200)

MAP New Value = 15

"Negative Stock Activated Materials for MAP Calculation Data pulled is Zero" 

Regards

Shiva

[former_member183424 · Accepted solution]

Can you explain.. What about Your Calculation 2??

I can understand the calculation 1, but what about calculation 2?

[Former Member · Accepted solution]

Hi Dev,

For Calculation 2  System Is Picking Zero value from Material Master for MAP calaculation

[former_member183424 · Accepted solution]

The exact issues is discuss on this thread.

You have to understand the logic for negative stock calculation.

Its calculate little different way for negative stock MAP calculation..

[former_member183424 · Accepted solution]

Calculation is like that..

Now you stock is

Qty = -50

Value = -500

Map = 10

Then you have receive qty 200 @ 15 = value 3000.

Now at that time you account entry will be

Stock Inv. a/c = 2750

GR/IR = 3000

Different Inv. = 250.

The Difference amount is calculated because of you negative stock

Its calculate is like that (Stock qty X (rate different) = 50X(15-10) = 250.

Now your stock is

Qty =  -50 + 200 = 150

Value = -500 + 2750 = 2250

New MAP is = 2250/150 = 15.

Hope you understand the logic..

Any confusion, please clarify..

[Former Member · Accepted solution]

good information

[Prasoon]

Hi,

   As of my knowledge, the MAP will be calculated as follows:

New MAP = ((Total GR - negative stock) x PO price) + (negative stock qty x previous MAP) - (negative stock value )) / (Total GR Qty - Negative stock)

So, in your example,

New MAP = ( (150 x 15) + (50 x 10)  - 500 ) / (150) =  15

   Refer the note 196505 - Neg.stocks, posting to previous period, revaluation

for more details about the posting logic. In the example provided in the note, you could see the posting logic in the current period as well as previous period.

Regards,

AKPT

[Former Member]

Hi AKPT,

Thanks for Valuable inputs your Rite.

Regards

Shiva.