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Material price getting picked incorrectly in production order

Hi,

The FG is maintained with price control V. However, at the time of GR for production order, the standard price is getting picked instead of moving average price. Why can this happen? Note that the material quantity was zero before the GR for production order. Can this be the reason?

I checked that there no current std cost estimate for the material and the transfer control is also deactivated. Valuation variant is set up to read price as per price control.

Moreover, when I changed the price control on material master to 'S', system picked up the moving avg price, which is even more surprising. Note that at this time the stock of material was existing in the plant.

Can someone explain this behavior?

BR

Abhinav

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4 Answers

  • Best Answer
    Posted on May 08, 2014 at 03:00 PM

    Hi Abhi

    When Prc Ctrl is V, then GR is influenced by the config step Define Goods Received Valuation for Order Delivery.

    You do this under cost obj controlling - prod cost by order

    Br. Ajay M

    PS- you are going against Sap recommendations with V

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  • author's profile photo Former Member
    Former Member
    Posted on May 08, 2014 at 02:51 PM

    Hi,

    Have you checked that the Production Costing variant (The Standard is PPP1) picks the Standard price or PMV, because all depends on the strategy that you have assigned to this costing variant. Remember that the costing variant that you employ to calculate the standard prices it could be different in reference with the costing variant from the production order.

    I hope I could help you.

    See you

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  • Posted on May 09, 2014 at 05:22 AM

    Dear Abhi

    Just to add Ajay Sir's reply: at step "Define Goods Received Valuation for Order Delivery" you need to select your valuation variant.

    Further using price control 'V' for inhouse manufactured materials i.e. FG and SFGs may seriously distort your price in material master. As at the time of settlement of orders system looks and compares stock of material with individual orders and post the variance accordingly. If suppose you have 10 orders in a period and each order for 10 qty and at the month end you have a stock of 11 qty, and your each order is having a variance of Rs10/- then at the month end you will end up with a mat price of Rs.20/- (say base MAP) + 10x10 (variance value for each order) i.e. total MAP will become Rs. 120/- for this material. So kindly have a serious look and then go for this kind of decesion.

    For this reason apart from other reasons SAP recommend 'S' for in house materials.

    Regards

    Rajneesh Saxena

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  • Posted on May 09, 2014 at 06:06 AM

    Thanks Ajay and everyone,

    Yes the price control V is against SAP recommendations but business has its reasons to maintain it so.

    BR

    Abhinav

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