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Moving Average Price not updating

former_member1215448
Participant
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Hello,

I am an end-user and we are looking to know why the Moving Average Price of a part is not updating. It seems to have a MAP one day then it goes back to $0.

This is a new part on which we have had some Goods Receipts (101 movement) already.

Any clues?

Valuation Class: 9000

Price Control: S

Patricia

Accepted Solutions (0)

Answers (8)

Answers (8)

BijayKumarBarik
Active Contributor
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Hi,

When your material have standard price control S, why you and your business needs information on MAP for that material where that MAP just used information.

With standard price control, system carries out all stock postings at a price defined in the material  and any variances in price are posted to price difference accounts.

Regards,

Biju K

Former Member
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I agree with Dev Parta Sir.

No need to go for MAP while Price control is Standard.As well as MAP would not be $0,because

MAP =Total Stock Value/Total Stock

If MAP is $0, there will be no stock value.

0 Kudos

Hi,

If the Price control is "S" MAP is not updated if any external procurement are completed.

If the Material Master Price is maintained for that is $100 with Price Control "S" and PO rate is $120

The stock is updated for the Price of $100/unit due to price control "S" and the balance $20/unit is transferred to Price Variance.

So kindly change the price control, then the MAP is updated in your material master.

Regards

Samsudeen M

JL23
Active Contributor
former_member183424
Active Contributor
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I agree with Jurgen Sir,

Your this sentence is incorrect "If the Price control is "S" MAP is not updated if any external procurement are completed."

Otherwise your example if correct...

MAP also updated with various transaction even the price control is S, but only for information.

former_member1215448
Participant
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Thank you for all the responses,

All of our parts are Price Control: S and we have no problem with the MAP. Except for this part.

We do have movements with values in MB51 or MB5B.

We use MAP calculation for material because our inventory dept uses this field to calculate our inventory values.

No manual changes were made to the Material Master for this field.

Patricia


former_member183424
Active Contributor
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If you are using standard price, then you inventory value should be calculated with standard price...

Like in MB51 and MB5B report, it will always calculate with standard price...

Also your MAP is calculated with every accounting transaction...

But the calculation for MAP is not giving you the correct valuation...

I can give you an example..

You can see my material has a big stock and value..

You can also see standard price for material is 311.00 and MAP for this material is 27.66..

You can see the MAP is very low than Standard price...

So if inventory department calculate the inventory value with MAP, that could be a incorrect value...

JL23
Active Contributor
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just assume you ordered that material with 100 $ instead of the real price, then you do a GR, it will not affect your valuation as you are doing standard price.

When the invoice arrives you see the error, you change the price in the PO e.g. to 10 $, you post the invoice without problem. if the stock was already partly consumed then the difference is distributed to the remaining stock, which makes the moving average price going down.

This could be a case that explains why your moving average jumps and goes back to zero.

however, there can be other reasons too, you can only solve this by checking all the documents involved, starting from a period where it was still okay.

alternative just set it to be equal the standard price and see how it develops further.

Former Member
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HI,

Please check report MB5B to get a detail of the materiel stock and value based on date range.

Former Member
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Hi,

Change the price control to "V" as MAP is calculated by Total value/Total Stock

Sagnik

former_member183424
Active Contributor
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If your material has price control is S, then all requirements and reports and movements and accounting entry will be as per standard price..

Why you need MAP calculation for material ?? Is there any business requirement or you just want to know?

Check the all movement for the material...

JL23
Active Contributor
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as you have standard price control, the moving average is just statistical and can open for manual changes in the material master.

if no manual changes were done, then you need to check the movements and its values

I am not aware of any report that can deliver the price development on moving average price if the material is standard price valuated.

But you said it had a value on one day, and no value on the other day, then it should be easy to see what happened in those 2 days when looking into MB51 and MR51