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Why movemet 543 will effect the average moving price?

Former Member

on ‎02-25-2014 12:45 PM

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Dear all:

I have created a Subcontracting PO, then sent the RM A to vendor, and made movement type 541 in MIGO. After the processing in vendor, recepit the the FG B to our plant, and made movement type 101 & 543 in MIGO. The action should reverse RM A in our system, but I found the amount of reverse was not the same as WIP A before sending to vendor. And it has resulted in the variance in average moving price of the RM A. So I want to why is it. Thanks~

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former_member183424
Active Contributor
‎02-25-2014 1:21 PM
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I hope you need to understand the Subcontracting Process and its accounting entry and MAP calculation...

Now you MAP for material is 0.

When you purchase RM A for quantity 10 for price 10.

At that time accounting entry will be

Inv. A/c 100 debit

GR/IR A/c 100 Credit..

And MAP will increase 10.

When you send the material RM A to a subcontractor movement type 541, no accounting entry happens.

As you have create a subcontracting PO and give the component RM A = 10 qty and at the goods receipt time movement type happens 101 and 543..

The accounting entry happens for the material RM A

Inv. A/c Credit 100.

Consumption A/c Debit 100.

Now your MAP for material RM A will be 0.

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JL23
Active Contributor
‎02-25-2014 1:20 PM
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Even a goods issue can cause a change in moving average price. But this would not be a dramatic change, this would usually just be the last digit in the decimals.

the new moving average after a goods issue is just total value divided by total valuated quantity under the consideration of the price unit.

if your change is bigger then give a real example and check MR51 and S_P00_07000139 - transaction as they can give you the accounting documents that have changed the valuation.

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Former Member
‎02-25-2014 12:57 PM
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When ever 543 movement type is performed, the system updates the value based on MAP price which is currently having in that material and not with what exactly MAP it was posted at the time of 541 movement.

Refer the below wiki link to know more about how MAP is calculated.

What are the basic Concepts of Price Control? - ERP SCM - SCN Wiki

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Prasoon
Active Contributor
‎02-25-2014 12:52 PM
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Hi,

   There wont be any accounting entries while you post the 541 movement. The material will be consumed at the time of 543 and the accounting doc will be generated based on the valuation price at the time of GR (or 543 for the components).

   The MAP will be adjusted based on the quantity consumed and the valuation price at the time of GR only.  This is the valuation logic.

   If you are getting something odd, please share the details with screenshot.

Regards,

AKPT

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Former Member
‎02-25-2014 1:12 PM
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So may I understan the change of AMP was not caused by movement 543, but the amount of consume 543 was deternmined by the current AMP?

JL23
Active Contributor
‎02-25-2014 1:14 PM
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Please please please, review what you write before you submit.

former_member183424
Active Contributor
‎02-25-2014 1:24 PM
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Zhang Grace wrote:




So may I understan the change of AMP was not caused by movement 543, but the amount of consume 543 was deternmined by the current AMP?




AKPT wrote :




The MAP will be adjusted based on the quantity consumed and the valuation price at the time of GR only.  This is the valuation logic.

How can you understand like that "MAP was not changed during the movement type 543" ?

Former Member
‎02-26-2014 3:25 PM
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I've down load the MB1A list of the material, and sorted by posting date. And I don't know why the AMP changed from Materila Document NO 5007080671. The AMP hss changed from $0.032/PC to $0.018/PC. And the actual purchasing price was 0.032. Thanks~

MaterialMvTSMat. Doc.EUnPstng DateEntry Date Quantity Amount LCUnit Price
PIFASCIS49046201AE543O5007081001PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081002PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081013PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081014PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081015PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081016PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081017PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081018PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081019PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081020PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081021PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081022PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081023PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081024PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081025PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081027PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081028PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081029PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081031PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081053PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081056PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081059PC09.02.201409.02.2014-29-0.520.017931
PIFASCIS49046201AE543O5007081059PC09.02.201409.02.2014-13-0.230.017692
PIFASCIS49046201AE543O5007081061PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081063PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081065PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007081066PC09.02.201409.02.2014-30-0.540.018
PIFASCIS49046201AE543O5007081000PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080999PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080998PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080997PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080996PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080995PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080994PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080993PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080672PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE543O5007080671PC09.02.201409.02.2014-42-0.760.018095
PIFASCIS49046201AE4114911603135PC07.02.201407.02.20141,80057.60.032
PIFASCIS49046201AE5414911603136PC07.02.201407.02.2014-16900
PIFASCIS49046201AE5414911603136PC07.02.201407.02.2014-1,80000
PIFASCIS49046201AE4114911603135PC07.02.201407.02.20141695.410.032012
PIFASCIS49046201AE411K4911603135PC07.02.201407.02.2014-1,800-57.60.032
PIFASCIS49046201AE411K4911603135PC07.02.201407.02.2014-169-5.410.032012
PIFASCIS49046201AE5424911603512PC07.02.201407.02.201446900
PIFASCIS49046201AE541O4911603136PC07.02.201407.02.201416900
PIFASCIS49046201AE541O4911603136PC07.02.201407.02.20141,80000
PIFASCIS49046201AE542O4911603512PC07.02.201407.02.2014-46900
PIFASCIS49046201AE101K5007022326PC22.01.201422.01.20142,00000
PIFASCIS49046201AE561K4911496818PC17.01.201417.01.20144,16700
PIFASCIS49046201AE561O4911498087PC17.01.201418.01.20141,52048.640.032
PIFASCIS49046201AE562O4911497924PC17.01.201418.01.2014-1,520-48.640.032
PIFASCIS49046201AE561K4911498155PC17.01.201418.01.201416900
PIFASCIS49046201AE561K4911498155PC17.01.201418.01.20141,80000
PIFASCIS49046201AE562K4911497928PC17.01.201418.01.2014-2,07900
PIFASCIS49046201AE561K4911498155PC17.01.201418.01.201411000
PIFASCIS49046201AE562K4911497741PC17.01.201418.01.2014-4,16700
PIFASCIS49046201AE2614911458846PC13.01.201413.01.2014-855-27.360.032
PIFASCIS49046201AE411K4911456510PC13.01.201413.01.2014-855-27.360.032
PIFASCIS49046201AE4114911456510PC13.01.201413.01.201485527.360.032
PIFASCIS49046201AE2614911452181PC12.01.201412.01.2014-1,792-57.340.031998
PIFASCIS49046201AE411K4911420015PC08.01.201408.01.2014-544-17.410.032004
PIFASCIS49046201AE411K4911420016PC08.01.201408.01.2014-976-31.230.031998
PIFASCIS49046201AE5414911423010PC08.01.201408.01.2014-97600
PIFASCIS49046201AE5414911423009PC08.01.201408.01.2014-54400
PIFASCIS49046201AE4114911420016PC08.01.201408.01.201497631.230.031998
PIFASCIS49046201AE4114911420015PC08.01.201408.01.201454417.410.032004
PIFASCIS49046201AE541O4911423009PC08.01.201408.01.201454400
PIFASCIS49046201AE541O4911423010PC08.01.201408.01.201497600
PIFASCIS49046201AE411K4911400141PC06.01.201406.01.2014-100-3.20.032
PIFASCIS49046201AE411K4911400140PC06.01.201406.01.2014-1,336-42.750.031999
PIFASCIS49046201AE411K4911400139PC06.01.201406.01.2014-356-11.390.031994
PIFASCIS49046201AE4114911400141PC06.01.201406.01.20141003.20.032
PIFASCIS49046201AE4114911400140PC06.01.201406.01.20141,33642.750.031999
PIFASCIS49046201AE4114911400139PC06.01.201406.01.201435611.390.031994
JL23
Active Contributor
‎02-26-2014 4:14 PM
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you cannot analyze price changes with a material document list, you will miss a lot postings that affect prices, e.g. manual price changes done via MR21 and MR22, price changes cause by debit or credit memos and invoices posted with differences. all this can only be seen in MR51 accounting document list or in the the stock card list with transaction S_P00_07000139


JL23
Active Contributor
‎02-25-2014 12:51 PM
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why  "the action should reverse RM A in our system" if you receive a subcontracted material?

Shouldn't it just consume the components?

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Former Member
‎02-25-2014 1:00 PM
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Yes, after the processing, the RM A was consumed, so the MB51 displayed the negative qty and amount. But the average moving price was different from the previous price.

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